for a brighter future for everyone.”€¦ · communities. Scotiabank’s Bright Future program focuses on responding to the needs of local communities around the world at a grassroots

9478112® Registered Trademark of The Bank of Nova Scotia.

Banks have a responsibility to support economic and social progress for a brighter future for everyone.”“

Commitment in Action2012 Scotiabank Corporate Social Responsibility Report

Our philanthropic program,

Scotiabank Bright Future responds to the needs of communities globally at the grassroots level through

donations, sponsorships and employee volunteerism across six pillars.

Go online for the latest news and successes of Scotiabank Bright Future in local communities at www.scotiabankbrightfuture.com

Together,

we are building stronger communities.

Scotiabank’s Bright Future program focuses on

responding to the needs of local communities

around the world at a grassroots level. The

program brings together the passion of our

employees, the insight of our partners and

the spirit of our communities. In 2012, that

passion, spirit and insight were recognized by

the Association of Fundraising Professionals

(AFP), Greater Toronto Chapter, when

Scotiabank received the Philanthropy Award

and was named Outstanding Corporation.

The annual awards honour

transformational leadership in

philanthropy. The awards recognize

individuals or groups who

demonstrate outstanding

commitment to the community and

empower others to meet challenges

and overcome obstacles.

Scotiabank contributes to a wide range

of community causes worldwide. As well,

Scotiabankers volunteer countless hours to

bring about change in their local communities.

Position only

Scotiabank’s philosophy is to integrate corporate

social responsibility (CSR) into all day-to-day

business activities. We measure success not only

in terms of fi nancial criteria but also in building

customer satisfaction and employee engagement,

maintaining strong governance practices

and supporting the communities we serve.

Scotiabank’s CSR report complements the Bank’s

Annual Report and is a high-level summary of the

Bank’s CSR strategy and priorities. Scotiabank’s

CSR website, scotiabank.com/csr, provides a

complete overview of the Bank’s strategy, key

performance indicators and examples of all

CSR activities.

Scotiabank’s CSR Strategy

Scotiabank’s strategy supports its core purpose of

helping customers become fi nancially better off.

It defi nes where the Bank is going and how it is

going to get there. The strategy guides the Bank’s

success and its focus on customers, diversity,

strength and stability. Scotiabank’s CSR priorities

are fully integrated into the Bank’s fi ve-point

business strategy, enriching it through key CSR

initiatives.

Balanced Scorecard

Scotiabank’s balanced scorecard is designed

to achieve consistency in strategic focus and

measurement across the organization. The Bank’s

balanced scorecard includes specifi c objectives

for fi nancial performance, customer service,

operational achievement and the employee

experience. Corporate Social Responsibility is

included in the operational quadrant, which

reinforces CSR as integral to Scotiabank’s

business.

CSR Advisory Committee

The CSR Advisory Committee was started in 2005

and consists of a group of senior executives from

across business lines and corporate functions. The

committee provides input on key CSR issues and

champions CSR initiatives in all business areas. The

Committee is chaired by the Bank’s Vice President

of CSR, Kaz Flinn.

Communicating Progress

The Bank’s key performance indicators and

additional data are available in the Appendix

to this report. Scotiabank supports the

Global Reporting Initiative (GRI), a non-profi t

organization that provides all companies and

organizations with a comprehensive sustainability

reporting framework that is widely used around

the world. This framework sets out the principles

and indicators that organizations use to measure

and report their economic, environmental and

social performance. Scotiabank reports at a G3

Application Level C, meaning the Bank reports

fully on at least 10 performance indicators,

including at least one from each indicator

dimension (Economic, Environmental and Social).

This report also meets the Bank’s commitment to

submit a Communication on Progress (CoP) to the

UN Global Compact (UNGC) to showcase how the

Bank is working towards the 10 UNGC principles.

Understanding that some of Scotiabank’s

stakeholders are looking for specifi c data on our CSR

progress, a PDF has been created that provides key

performance indicators and data charts specifi c to

our activities in fi scal 2012. This data is available at

scotiabank.com/csr/reports

1 Message from Rick Waugh, CEO

2 Stakeholder Engagement

4 Scotiabank’s 3 Areas of CSR Impact

5 Governance

10 Economic

15 CSR in Action: EcoLiving Program

16 Social

22 CSR in Action: Suchitoto

23 Appendix

Contents

Scotiabank became the fi rst

Canadian bank in 2010 to adopt

the UN Global Compact (UNGC), a

commitment to uphold and protect

human rights, labour, environment

and anti-corruption standards

through business practices.

In this report, we have identifi ed

the areas in which we are working

towards the UNGC principles

with the UNGC logo. For more

detailed information on how we

are working towards the 10 UNGC

principles, please visit scotiabank.

com/csr/ataglance.

UN Global Compact

About this Report

Scotiabank’s philosophy, to integrate corporate social

responsibility into all

day-to-day business activities.

For more on Scotiabank’s

Corporate Social

Responsibility reporting visit

scotiabank.com/csr/ataglance

Corporate Headquarters

Scotiabank, Scotia Plaza, 44 King St. W., Toronto, Ontario Canada M5H 1H1Tel: (416) 866-6161 Fax: (416) 866-3750 Email: [email protected]

For further information contact: Public, Corporate and Government Affairs, Scotiabank, 44 King St. W., Toronto, Ontario Canada M5H 1H1 Email: [email protected]

(1,1) -1- Cover_outside.indd 2013-03-11 10:51 AM(1,1) -1- Cover_outside.indd 2013-03-11 10:51 AM

www.scotiabank.com/ca/en/0,,378,00.html

mailto:[email protected]

www.scotiabank.com/csr

www.scotiabank.com/csr/reports

All four business lines

contributed to our results,

reflecting the success of

Scotiabank’s highly

diversified business model.

Total net income

$6,466 million

Up 21% from 2011

(including real estate gains)

Scotiabank achieved record results in 2012.

29% Employees

20% Suppliers

45% Net income before government taxes

6% Loan losses

.5% Non-controlling interest and capital instrument holders

Net income allocation

29% Government taxes

40% Reinvestment to BNS

31% Dividends to shareholders

*See the 2012 Annual Report for complete details on these figures.

■ Areas in red indicate a full range of corporate, commercial, trade fi nance and retail services.

● Areas with a red dot indicate global corporate and investment banking, or capital markets businesses, Scotiabank or affi liate bank representative offi ces, or investment management or retail operations with less than 10 branches.

Locations worldwide‡

*Excludes Affi liates

Branches and offi ces*

3,123Employees*

81,497Customersmore than 19 million

North America: Canada, Mexico, United States Central & South America: Belize, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Guyana, Nicaragua, Panama, Peru, Uruguay, Venezuela Caribbean: Anguilla, Antigua and Barbuda, Aruba, Bahamas, Barbados, Bonaire, British Virgin Islands, Cayman Islands, Cuba, Curaçao, Dominica, Dominican Republic, Grenada, Haiti, Jamaica, Puerto Rico, St. Eustatius, St. Kitts and Nevis, St. Lucia, St. Maarten, St. Vincent and the Grenadines, Trinidad and Tobago, Turks and Caicos, U.S. Virgin Islands Europe & Middle East: United Arab Emirates, Egypt, Ireland, Russia, Turkey, United Kingdom Asia/Pacifi c: Australia, China, Hong Kong SAR – People’s Republic of China, India, Japan, Korea (Republic of), Malaysia, Singapore, Taiwan, Thailand, Vietnam

‡ Includes Affiliates.

Business lines % of 2012 net income (millions)*

* % of 2012 net income, excluding the Other segment.

31%

Canadian Banking $1,938

27%International Banking $1,734

24%Global Banking and Markets $1,492 18%

Global Wealth Management $1,170

Scotiabank is a leading multinational financial services provider and Canada’s most international

bank. Through our team of more than 81,000 employees, Scotiabank and its affiliates offer

a broad range of products and services, including personal, commercial, corporate and investment

banking to over 19 million customers in more than 55 countries.

Scotiabank’s Five-Point Strategy

Integrity We interact with others ethically and honourably.

Respect We empathize and fully consider the diverse needs of

others. Commitment We are committed to helping customers

succeed. Insight We use a high level of knowledge to proactively

respond with the right solutions. Spirit We enrich our work

environment with teamwork, contagious enthusiasm and a

“can-do” attitude.

Values

Culture of collaboration

Taking full advantage of business opportunities, synergies, best

practices and our global talent pool.

One Team One Goal

Guided by our strong values and risk management culture,

Scotiabank focuses on maintaining the trust and confi dence of

customers, while helping them become fi nancially better off.”“

All four business lines

contributed to our results,

reflecting the success of

Scotiabank’s highly

diversified business model.

Total net income

$6,466 million

Up 21% from 2011

(including real estate gains)

Scotiabank achieved record results in 2012.

29% Employees

20% Suppliers

45% Net income before government taxes

6% Loan losses

.5% Non-controlling interest and capital instrument holders

Net income allocation

29% Government taxes

40% Reinvestment to BNS

31% Dividends to shareholders

*See the 2012 Annual Report for complete details on these figures.

■ Areas in red indicate a full range of corporate, commercial, trade fi nance and retail services.

● Areas with a red dot indicate global corporate and investment banking, or capital markets businesses, Scotiabank or affi liate bank representative offi ces, or investment management or retail operations with less than 10 branches.

Locations worldwide‡

*Excludes Affi liates

Branches and offi ces*

3,123Employees*

81,497Customersmore than 19 million

North America: Canada, Mexico, United States Central & South America: Belize, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Guyana, Nicaragua, Panama, Peru, Uruguay, Venezuela Caribbean: Anguilla, Antigua and Barbuda, Aruba, Bahamas, Barbados, Bonaire, British Virgin Islands, Cayman Islands, Cuba, Curaçao, Dominica, Dominican Republic, Grenada, Haiti, Jamaica, Puerto Rico, St. Eustatius, St. Kitts and Nevis, St. Lucia, St. Maarten, St. Vincent and the Grenadines, Trinidad and Tobago, Turks and Caicos, U.S. Virgin Islands Europe & Middle East: United Arab Emirates, Egypt, Ireland, Russia, Turkey, United Kingdom Asia/Pacifi c: Australia, China, Hong Kong SAR – People’s Republic of China, India, Japan, Korea (Republic of), Malaysia, Singapore, Taiwan, Thailand, Vietnam

‡ Includes Affiliates.

Business lines % of 2012 net income (millions)*

* % of 2012 net income, excluding the Other segment.

31%

Canadian Banking $1,938

27%International Banking $1,734

24%Global Banking and Markets $1,492 18%

Global Wealth Management $1,170

Scotiabank is a leading multinational financial services provider and Canada’s most international

bank. Through our team of more than 81,000 employees, Scotiabank and its affiliates offer

a broad range of products and services, including personal, commercial, corporate and investment

banking to over 19 million customers in more than 55 countries.

Scotiabank’s Five-Point Strategy

Integrity We interact with others ethically and honourably.

Respect We empathize and fully consider the diverse needs of

others. Commitment We are committed to helping customers

succeed. Insight We use a high level of knowledge to proactively

respond with the right solutions. Spirit We enrich our work

environment with teamwork, contagious enthusiasm and a

“can-do” attitude.

Values

Culture of collaboration

Taking full advantage of business opportunities, synergies, best

practices and our global talent pool.

One Team One Goal

Guided by our strong values and risk management culture,

Scotiabank focuses on maintaining the trust and confi dence of

customers, while helping them become fi nancially better off.”“

Scotiabank CSR Report 2012 1

In recent years, we’ve seen one crisis after

another and much uncertainty. This has

revealed the important role banks play in the

global economy. It has also shown that banks

have a responsibility to support economic

and social progress for a brighter future for

everyone.

The fi nancial system, and especially banks,

depend on trust, confi dence, integrity and

profi tability. Consumers must be able to trust

banks with their money. And we all have to

trust that our savings will be protected and

our payments can be made in confi dence.

This is what drives our economy forward – a

responsibility that Scotiabank takes seriously.

A strong culture of doing it the right way

Helping customers become fi nancially better off

is our core purpose. And doing this the right

way is at the heart of our business and it’s why

Scotiabank has continued to be successful,

even in times of crises. In fact, we were named

the 2012 Global Bank of the Year by The

Banker, a Financial Times publication, for our

strength, stability and profi tability in a time of

considerable volatility.

You can defi ne corporate social responsibility

in many ways. Our global community of

Scotiabankers defi nes it as the right way to do

things, part of our One Team, One Goal culture,

where all of us work together to build a better

quality of life for all stakeholders.

Building a stronger global economy

If past crises have taught us anything, it’s that

taking control of your fi nancial wellbeing

and strengthening fi nancial literacy is crucial.

Governments and banks share responsibility in

educating, informing and engaging consumers

to help them achieve this.

This year, Scotiabank created a global fi nancial

literacy strategy to provide individuals with

access to education, resources and advice that

empower them to make knowledgeable and

responsible fi nancial decisions.

Because life events shape a person’s fi nancial

health, our strategy is focused on a Literacy

Life Phase approach to help people become

fi nancially better off no matter what stage of

life they’re in. We believe this is the best way

to give individuals the confi dence they need to

save and invest for a bright future and support

a healthier economy.

Contributing to social and development goals

We are a 180-year old bank and operating in an

ethical, responsible way has always been part of

our culture. In just the last decade, since I became

CEO, I’ve seen the landscape of corporate social

responsibility – and what it means to business

– evolve. At Scotiabank too, CSR has become

integrated into all of our business activities, aiding

social and economic progress.

Our Bright Future program is an excellent

example of how Scotiabankers are making

positive change in communities where we do

business. Driven by employees, Bright Future

is a grassroots movement that seeks to create

a positive impact through volunteerism and

philanthropy in more than 55 countries.

We’re also committed to the UN Global

Compact and the work it is doing on achieving

development goals to reduce poverty. A great

success story I love to tell is on our micro-

and consumer fi nance operations in Latin

America and the Caribbean, where small-scale

entrepreneurs and micro-business owners

account for 75% of businesses. Promoting

fi nancial inclusion among this underserved

market has shown how the banking sector

can enable economic and social growth in a

prudent, profi table and sustainable way.

Looking ahead

I could never have imagined the deep

connections between our Bank and the

communities we serve when I joined Scotiabank

some 40 years ago as a teller in a shopping mall

branch in Winnipeg, Manitoba.

It is the strong values of each Scotiabanker

that have continued to inspire and motivate us

to take care of our shareholders, customers,

communities and each other. They will continue

to be an important part of our efforts as we look

ahead and focus on building brighter futures.

Rick Waugh, CEO

CEO’s Message

Dear stakeholders,

It is the strong values of each Scotiabanker that has inspired us to take care of all of our stakeholders.”

– Rick Waugh, Chief Executive Offi cer

“

2 2012 Scotiabank CSR Report

Stakeholder Engagement

CSR is an integral part of Scotiabank business

Our goal: To better understand

what readers thought of the

report and the effectiveness

of its efforts.

Scotiabank is interested in what CSR Report

readers and stakeholders have to say about

communications products and CSR efforts.

As a result in 2011, the Bank instituted a

formal annual feedback session to help

guide the development of this report.

Who we polled Scotiabank invited a broad range of stakeholders to provide

in-depth feedback in person, by teleconference and through

written comments.

Focus group participants

included businesses, non-profi t

organizations, Aboriginal

organizations, trade-based and

investor organizations, municipal

governments, post-secondary

institutions and suppliers.

The participants were general

media consumers as well as

some were customers. Their

comments refl ected both their

experience with Scotiabank in their

professional capacity and their

general impressions of the Bank.

Participants were well-informed

about the Bank’s activities, both

present and past, in CSR and they

were highly aware of Scotiabank’s

sponsorship, advertising and

marketing efforts.

At a single glance, these fi ve areas categorize the Bank’s wide-ranging CSR

activities although this framework does not clearly explain why the Bank takes

on particular priorities and their impact.

Communicating about fi ve distinct priority areas can also be challenging and,

according to the Bank’s research and stakeholder input, it would be better

to focus on fewer key priority areas and report on the impact of Scotiabank’s

CSR activities.

This report is designed to better explain why Scotiabank chooses certain areas

of focus and to better describe the impact of CSR activities in communities.

Five CSR Priorities

For a number of years now, Scotiabank has been reporting on

its fi ve priority areas of Corporate Social Responsibility:

Customers

Corporate Governance and Shareholders Employees

Environment Communities

Who


Participants made several

suggestions for improvement to

the Bank’s CSR reporting:

1. Improve the focus of

communication: Participants

noted that Scotiabank was

active in many CSR fi elds but felt

that communications would be

improved by reducing the number

of reporting areas.

2. Illustrate how CSR is an integral

part of Scotiabank business:

Stakeholders were interested in

how CSR efforts are woven into

everyday business at the Bank as

well as how this is communicated

consistently through the Bank’s

overall brand.

3. Provide examples: Participants

found that case studies and

specifi c examples of programs

helped illustrate the CSR activity

across the Bank to create a greater

understanding of employee

engagement in CSR.

Scotiabank asked the group to comment on the impact of the

Bank’s CSR initiatives and programs, the level of awareness about

Scotiabank in their communities, as well as the effectiveness of

communications, particularly the CSR Report.

Results – three suggestions Impact – improved reporting

The 2012 Scotiabank CSR Report has been designed to

incorporate the thoughtful feedback from engaged stakeholders.

For example, instead of fi ve

areas of reporting (Corporate

Governance, Customers,

Employees, Environment and

Community), Scotiabank is

consolidating information into

three key areas that encompass

the impact of the Bank’s global

CSR activities: Governance,

Economic and Social. For more

information on the structure of

this report see the following page.

In addition, this report includes

case studies that illustrate how

the Bank and its employees

participate in CSR efforts in

various communities.

Some of the feedback the Bank

received will require signifi cant

refl ection and discussion, as well

as long-term planning, particularly

in regard to sharpening the

focus of CSR efforts across all

of Scotiabank’s public-facing

activities.

Every year, the Bank will continue

to solicit qualitative feedback from

focus groups reading the CSR

report, with the aim of improving

the report so that it is more

readable, more informative and

more interesting.

The Bank welcomes feedback

about this report and other

Scotiabank communications at

corporate.communications@

scotiabank.com

Results

Scotiabank is interested in what CSR Report readers and stakeholders have to say about communications products and CSR efforts.

Impact


Green Note In previous years, Scotiabank has had a dedicated section on the environment to report all environmental activities, including

environmental risk, paper and energy consumption and recycling. However, that reporting framework does not accurately

refl ect the importance Scotiabank has placed on environmental practices, nor does it refl ect the way environmental

considerations are fully integrated into the Bank’s overall operations, which is why we now integrate it within our three areas

of impact. For example, in governance, environment is about policy, risk and adherence to external regulatory frameworks

such as the Equator Principles. In the area of economic impact, environmental efforts include educating customers about

environmental options through initiatives such as the EcoLiving Program and the Bank’s internal efforts on reducing its

environmental impact. In the area of social impact, environmental activities include the Bank’s philanthropic and sponsorship

support of environmental projects and organizations focusing on environmental issues and climate change.

As always, Scotiabank will continue to collect stakeholder feedback and will build on and improve its reporting methods to

meet the needs and interests of our stakeholders.

Governance Governance GovernanceGovernance Economic Social1 2 3

Governance describes how the Bank’s

values are articulated in day-to-day business

including policies such as managing risk for

shareholders, employees, customers and

other stakeholders.

The Bank makes an economic impact by helping

clients become fi nancially better off through

relevant products and services but also includes

unique tools and solutions such as fi nancial

literacy activities and microfi nance opportunities.

Scotiabank makes a social impact in

its hiring practices and commitment to

human rights as well as philanthropic

giving and social investments in

communities.

Refer to Page 5 Refer to Page 10 Refer to Page 16for more on Governance impact

for more on Economic impact

for more on Social impact

This year’s report is designed to better explain why

Scotiabank chooses certain areas of focus and to better

describe the impact of CSR activities in communities.

Three areas of CSR impact


GovernanceGovernance1Governance is an articulation of Scotiabank’s values and principles.

It is how the Bank conducts business, in all its aspects, around the world.

The Board of Directors leads and sets

Scotiabank’s governance policies and

practices. The Board of Directors is responsible

for setting the ethical tone of the Bank by

encouraging the senior management team

to create a culture of integrity throughout

the organization.

As a multinational fi nancial institution

with operations in more than 55 countries,

Scotiabank works to adopt governance policy

and practices that meet or exceed local,

Canadian and international standards and

requirements.

Accountability for Scotiabank’s actions

and results is shared by all employees and

ultimately rests with the Board of Directors,

who are elected to represent shareholders’

interests. All directors, offi cers and employees

of Scotiabank must annually acknowledge

their adherence to the Guidelines for

Business Conduct.

In order to lead a culture of good corporate

governance, the Board too must adhere

to leading policies and practices such as

board composition, renewal and term

limits. Scotiabank is committed to including

directors who are local, regional, national and

international business and community leaders.

Among other factors, directors are elected for

their fi nancial literacy, integrity, as well as their

sound and independent business.

Renewal at the Board level is important in

order to ensure that Board skills match the

Bank’s strategy. Board composition and skills

are annually assessed both individually and

collectively. In 2011, shareholders approved

term limits for directors. This policy strikes a

balance between deep knowledge of bank

affairs, renewal and additional expertise.

How the Bank governs

Governance guides how

Scotiabank makes decisions,

how it organizes its processes and

policies, and how it deals with the

various interests of its many

stakeholders including shareholders,

customers and employees, as well as

the broader community.


Scotiabank’s goal is always to fi nd fair and

timely solutions to customer concerns. With

over 19 million customers in 55 countries,

a straightforward and accessible process is

essential.

In Canada, personal banking and small

business customers have access to a three-step

Complaint Resolution Process for reporting

their concerns and complaints quickly:

1. Speak to the local branch or contact

centre and directly to the manager if the

concern is not resolved.

2. Contact the Scotiabank Offi ce of the

President. Contact information is readily

available on the website and at branches.

Representatives from the Offi ce of the

President are dedicated to helping with

issues that were not resolved at the branch.

3. Write to the Offi ce of the Ombudsman. The

Ombudsman’s Offi ce was created to provide

independent, impartial reviews of concerns

that could not be resolved in the fi rst two

steps. Scotiabank’s Ombudsman is appointed

by and reports directly to the CEO.

Board of directors

reporting structure

The values of strong corporate governance help focus the organization on its key priority: building and maintaining strong, enduring relationships with customers.

For more informationvisit

scotiabank.com/csr/governance

In 2012, the Board approved term limits

for Committee Chairs to ensure continued

renewal. The Board also approved limits

on the number of outside public company

directorships that Directors may hold. All

but two of the Directors, nominated for

election at the 2013 annual meeting of

shareholders are independent, including

the non-executive chair.

As the global economy remains in a period

of slow growth and constant change,

Scotiabank’s governing culture of openness,

integrity and accountability has positioned the

Bank well. An ongoing priority of the Board

is to ensure a robust corporate governance

structure exists to oversee leadership strategy

and executive compensation. The values of

strong corporate governance help focus the

organization on its key priority: building and

maintaining strong, enduring relationships

with customers.

EXECUTIVE & RISK COMMITTEE

GLOBAL RISK MANAGEMENT SHAREHOLDERS’

AUDITORS

AUDIT & CONDUCTREVIEW COMMITTEE

SHAREHOLDERS

BOARD OF DIRECTORS

ELECT

APPOINT

REPORT

REPORT

REPORT

APPOINT

APPOINTAPPOINT

APPOINTCORPORATE GOVERNANCE

& PENSION COMMITTEE

HUMAN RESOURCES COMMITTEE

INDEPENDENT ADVISORGROUP

COMPLIANCEINTERNAL

AUDITFINANCE

DEPARTMENTMANAGEMENT

Addressing customer concerns

www.scotiabank.com/csr/governance


If customers still feel their concern has not

been satisfactorily addressed, they may contact

the Ombudsman for Banking Services and

Investments, an independent organization

investigating customer complaints about

fi nancial services providers in Canada.

Internationally, Scotiabank locations follow

similar complaint management processes,

which vary according to local needs or

regulatory requirements.

Customer satisfaction is critical to Scotiabank’s

success as customer loyalty and satisfaction

are key global performance indicators for the

Bank. The Bank tracks its progress in providing

service to customers and in successfully

resolving their concerns by using a number

of research and survey tools to gather

customer feedback. Areas for improvement

identifi ed from this feedback are translated

into performance targets and appraisals at

the branch level. Some of the measurement

programs include:

• Through Your Customers’ Eyes, a survey

of randomly-selected retail banking

customers in Canada;

• International Banking Customer Loyalty

Program survey of Scotiabank customers in

23 countries; and

• Team Voice, an option for employees to

anonymously comment.

Complaint

resolution process LOCAL

BRANCH

CONTACTCENTRE

CUSTOMER

SCOTIABANKOMBUDSMAN

OMBUDSMAN FOR BANKINGSERVICES AND INVESTMENTS

SCOTIABANKOFFICE OF THE

PRESIDENT

Customer

loyalty

Scotiabank Retail Customer Loyalty (Canada) – Top Box

Top Box refers to the proportion of customers who provided the highest rating based on a five-point rating scale.

201220112010

53% 56%56% 53%

Small Business Customer Loyalty (Canada) – Top Box

Scotiabank’s small business customer loyalty index is based on results from an internal survey, and is a key indicator of our customers’ loyalty to Scotiabank. Top Box refers to the proportion of customers who provided the highest rating based on a five-point rating scale.

201220112010

55% 57%

Scotiabank Retail Customer Loyalty (International Banking) Through Your Customers’ Eyes, International Banking (TYCE IB )

*Customer Loyalty Index (CLI) is a composite score, which is the average of the proportion of Top Box responses (highest ranking on a five-point scale) across four loyalty questions.

201220112010

47%43%45%


Risk management is a traditional strength

of Scotiabank. Understanding, testing and

planning for risk is critical to the Bank’s long-

term viability and its culture, particularly in

international markets.

Environmental and social risk form part

of Scotiabank’s commitment to making

ethical business decisions and taking into

consideration the needs of stakeholders.

In an era of climate change and as a

multinational organization in over 55

countries, environmental risks are constantly

evolving. Both in lending and investing,

Scotiabank customers and shareholders expect

the Bank to pay attention to the environment.

Scotiabank evaluates environmental factors

as part of its lending and investment

decisions. As well, retail customers want

fi nancial products and services that take the

environment into consideration.

To help manage environmental risks,

Scotiabank has an environmental policy, which

was revised and approved by the Bank’s Board

of Directors in October 2009. The policy

guides the Bank’s day-to-day operations,

lending practices, supplier agreements,

management of real estate holdings and

external reporting practices. A dedicated

Director of Environmental and Social Risk

Management assists in implementing the

policy.

Environmental risks associated with the

business operations of each borrower and any

real property offered as security are considered

in the Bank’s credit evaluation procedures.

This includes an environmental assessment,

where applicable, and commentary on climate

change, where it would have a material

impact – whether regulatory, physical or

reputational – on the borrower. The Global

Risk Management department holds primary

responsibility for establishing the related

policies, processes and standards associated

with mitigating environmental risk in the

Bank’s lending activities.

Social risk, in the context of fi nancial

institutions, is about increasing clients’

understanding of the impact that their

business and/or industries can have on

communities at large. In Canada, this is

often focused on the impact of various

industries on Aboriginal communities, for

example. Scotiabank monitors policy and

legislative requirements through ongoing

dialogue with government, industry and

stakeholders in the countries where the

Bank operates. Scotiabank regularly meets

with environmental organizations, industry

associations and socially responsible

investment organizations on issues such as

climate change, consultation with Aboriginal

communities, protection of biodiversity,

confl ict minerals and the promotion of

sustainable forestry practices.

Environmental and social risk form part of Scotiabank’s commitment to making ethical business decisions and taking into consideration the needs of stakeholders.

Environmental and social risk


2012 Equator

Principles

assessments

Scotiabank is among some 77 fi nancial

institutions across the globe to commit to

the Equator Principles. The Equator Principles

are a set of internationally recognized,

voluntary guidelines that establish social

and environmental standards in the banking

industry. Since 2006, Scotiabank has

integrated these standards into its processes

and procedures.

The Equator Principles are based on the

International Finance Corporation Performance

Standards on social and environmental

sustainability and on the World Bank Group’s

Environmental, Health and Safety Guidelines.

The Principles apply to project fi nancing where

total capital costs exceed US$10 million. In

adopting these principles, Scotiabank agrees

to provide loans only to those projects where

borrowers can demonstrate their ability and

willingness to comply with the comprehensive

standards. The standards require that projects

be socially responsible and conform to sound

environmental management practices.

The Bank has a complete set of tools and

guidance documents to help ensure that

banking and credit offi cers have the necessary

information to meet the Equator Principles

standards.

Project Number ofcategory assessments

A 3

B 7

C 5

Total 15

Canada

United States

Latin America

Australia

33%

20%

40%

7%

For more information

visit

www.equator-principles.com

Project fi nancing

In 2012, Scotiabank fi nanced 15 projects meeting Equator Principles requirements.

Category A: Projects likely to have significant adverse social or environmental impacts that are diverse, irreversible or unprecedented. Examples of these types of impacts include: loss of a major natural habitat, impacts on vulnerable groups or ethnic minorities, involuntary displacement or resettlement, or impacts on significant cultural heritage sites.

Category B: Projects with potential adverse social or environmental impacts on human populations or environmentally important areas which are less adverse than those of Category A projects. These impacts tend to be site-specific; few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects.

Category C: Projects with minimal or no adverse social or environmental impacts. Beyond screening, no further SEA action is required.

http://www.equator-principles.com


For more information on Scotiabank’s

Financial Literacy

strategy and activities, visit

www.scotiabank.com/fi nancial-literacy

GovernanceEconomic2

Business case

Everyday transactions require a level of

fi nancial literacy. From paying for groceries to

launching a business, the more informed the

consumer, the better the results.

Strategy

Scotiabank has developed a global fi nancial

literacy strategy to help coordinate efforts

across more than 55 countries. The

foundation of the Bank’s efforts to improve

fi nancial education is using key literacy life

phases as teachable moments.

In 2012

Scotiabank has partnered with Junior

Achievement on the Economics for Success

program throughout 10 countries in Latin

America and the Caribbean as well as

Canada. This program teaches students the

fundamentals of personal fi nance and explores

related education and career opportunities.

Financial literacy

Photos left: Scotiabank Mexico’s sponosorship of Fundación Educa (NGO) helped develop the Bank’s ongoing Afl atoun program. Afl atoun is a children’s education program focusing on social and fi nancial education. A group of children toured a Scotiabank branch and attended a class offered by Scotiabank employees on the benefi ts of saving money. Middle & right: Scotiabank’s ongoing initiatives focused on fi nancial education.

Scotiabank’s CSR efforts focused on economic impact include ways that

the Bank helps a diverse range of customers become fi nancially better

off and assists customers and employees in understanding the economic

and environmental benefi ts of going green.

www.scotiabank.com/financial-literacy


Photo: Scotiabank Peru partnered with CARE Peru on the “Creating Capacity for Financial and Social Inclusion” program in local communities. Mrs. Victoria Apaza de Villena, a member of the women’s savings group of CreditScotia, and her daughter and Mr.Hugo Huacac, are part of the Association of Honey Producers.

Improving customers’ financial circumstances, and the environment, has a positive economic impact on communities around the world.

Business case

Small-scale entrepreneurs and micro-business

owners represent a large component of the

economy in Latin America and the Caribbean,

accounting for over 75% of all businesses.

Due to their small size and informal nature,

however, micro-business rarely links to

traditional banking sources for assistance. In

addition to providing services to a new sector

of customers, microfi nance contributes to the

economic and social development of local

communities.

Microfi nance strategy

Through recent acquisitions in Latin America,

Scotiabank has gained expertise in providing

microfi nance services, in a prudent, profi table

and sustainable way.

Scotiabank defi nes microfi nance clients as self-

employed or micro-business owners with annual

gross revenues below CAD$150,000 and who

need fi nancing to invest in the development and

growth of their business. Scotiabank currently

provides innovative services to these small-scale

entrepreneurs through dedicated and specialized

business units in Peru, Chile, Dominican Republic,

Guatemala and Jamaica.

In 2012

In 2012, Banco Desarrollo of Scotiabank

in Chile launched a very successful award

program for women micro-entrepreneurs.

Representing Scotiabank’s fi rst foray into

Microfi nance in the English Caribbean,

CrediScotia Jamaica completed its fi rst

year of operations this year.

Scotiabank’s Microfi nance operations also

provide free fi nancial literacy programs to

clients and non-clients to strengthen basic

business and fi nance management abilities.

Scotiabank will continue to expand the

availability of these programs in 2013.

Microfi nance


Business case

Canada welcomes about 250,000 newcomers

to the country every year. As Canada’s most

international bank, Scotiabank is known to

many newcomers even before they arrive.

Welcoming newcomers is part of Canadian

culture and a longstanding value of the Bank.

Offering fi nancial services in a multitude

of languages is a means to welcome new

customers and improve fi nancial literacy.

StartRight in Canada

The Scotiabank StartRight® program was

designed for newcomers to make settling in

Canada easier. The program offers newcomers

free day-to-day banking for one year as well

as a variety of other investment and borrowing

products and services.

Scotiabank’s Multicultural Banking unit has

worked to adapt the Bank’s policies and

procedures, in order to help newcomers gain

credit. Advisors are versed in fi nancial literacy

and readily deliver advice on banking basics.

The StartRight website (scotiabank.com/

startright) offers resources in eight languages.

ABM services are available in English, French,

Spanish and Traditional and Simplifi ed Chinese.

Customer contact centres serve customers in

Punjabi, Spanish, Mandarin, Cantonese, French

and English.

Through Scotiabank branches in India and

Mexico, and partnerships with Kotak Mahindra

Bank (India) and China Everbright Bank and

Bank of Xi’an (China), newcomers can also

establish their banking relationships with

Scotiabank in Canada prior to leaving their

home country.

In 2012

Scotiabank has a partnership with the Toronto

Region Immigrant Employment Council

(TRIEC) to help immigrants develop the social

and professional networks needed to fi nd

employment. In 2012, Scotiabank became

a founding sponsor of TRIEC’s Professional

Immigrant Networks (PINs) website initiative.

PINs provides immigrant professionals with

access to members of their professional

community, helping newcomers connect to

employers and other key organizations.

Through a 2012 sponsorship initiative with

Languages Canada, Scotiabank built a

straightforward and informative fi nancial

literacy presentation for the growing number

of international students studying in Canada

each year. The presentation provided advice on

practical topics such as the difference between

a chequing and savings account, debit vs.

credit card, how to manage money and how

to build a solid Canadian credit history. The

presentation was also shared with college and

university student associations, at campus

events and in language schools.

Welcoming newcomers is part of Canadian culture and a longstanding value of the Bank.

Multicultural banking

For more informationon Scotiabank’s

StartRight® program, visit

scotiabank.com/startright

www.scotiabank.com/startright


Business case

As a Canadian-based fi nancial services

company, Scotiabank provides specialized

Aboriginal banking services to communities

throughout the country. Helping customers

become fi nancially better off is Scotiabank’s

core purpose. The Bank is committed to

encouraging and enhancing opportunity,

economic development and education to all

Aboriginal people.

Aboriginal banking services

Scotiabank was one of only four companies

awarded with the distinction of Progressive

Aboriginal Relations Gold by the Canadian

Council for Aboriginal Business in 2011.

At the branch level in Canada, Scotiabank

operates a network of 27 Aboriginal

Banking Centres, including four on-reserve

branches. Some Scotiabank branches have

arranged special secured-lending programs

within individual Aboriginal communities.

For example, branches have maintained

longstanding partnerships with Aboriginal

communities to fund on-reserve housing or

create unique lending programs for community

projects.

Scotiabank branches serving these

communities are encouraged to purchase

products and services from Aboriginal-

owned businesses or offer employment

and training opportunities to local

Aboriginal community members.

Scotiabank also focuses on professional

development opportunities for Aboriginal

employees. Due to the Bank’s overall

commitment to create an inclusive and

accessible workplace, Scotia Aboriginal

Network (SAN) was established in 2009. It is

an employee resource group, comprised of

Aboriginal employees and their colleagues.

The network provides an interactive forum

for employees who are passionate about

Aboriginal Peoples’ employment issues within

the Bank and in the broader community.

In 2012

In January of 2012, the fi rst group of students

joined the Bank-supported on-reserve youth

entrepreneurship program at Oscar Lathlin

Collegiate at Opaskwayak Cree Nation. The

program, in partnership with the Martin

Aboriginal Education Initiative (MAEI),

focuses on life, education and workplace

skill development. Students are given

entrepreneurial experience and start-up help

for business ownership.

This past year, Scotiabank announced a

three-year sponsorship agreement with the

Aboriginal Human Resource Council (AHRC),

whose mission it is to create and market a

wide range of resources to help Aboriginal

people participate fully in Canada’s economy.

In June, in partnership with Scotiabank,

the AHRC hosted a learning event for

business leaders to increase Aboriginal

employment retention.

Aboriginal banking

Scotiabank is committed to encouraging and enhancing opportunity, economic development and education to Canada’s Aboriginal people.

Photo: Outside Looking In, a program offering high school credits to Aboriginal youth who complete courses in the arts, physical education, guidance and career counseling, held a full day session at Scotiabank headquarters in Toronto, ON. Twelve aboriginal youth participated in fi nancial literacy and job preparation workshops.


Business case

With more than 81,000 employees in 55

countries, Scotiabank has a responsibility

to reduce the impact that its business has

on the environment. Scotiabank is also in a

unique position to introduce environmental

policies and guidelines in countries where legal

requirements do not mandate them.

Reducing impact

Efforts to reduce impact across the

organization begin with the Bank’s

environmental policy. The policy guides

activities and efforts in all countries where

Scotiabank does business. First and foremost,

the Bank complies with all environmental legal

requirements; the Bank includes environmental

risk in its risk management policy; the Bank

considers the environmental performance of

suppliers; and promotes an environmentally

responsible workplace.

These principles are applied daily in the

reduction of paper consumption, recycling,

reducing energy consumption and greenhouse

gas emissions, to real estate practices and

supply chain management.

These efforts have had an impact where overall

consumption has declined and awareness and

commitment to environmental practices have

grown throughout the organization.

For example, since the paper-reduction policy

was established in 2008, consumption of

bond copy paper in Scotiabank’s Canadian

operations has been reduced by 23%.

In 2012

Globally, dozens and dozens of initiatives

have made a difference. Online banking at

Scotiabank has continued to increase each

year, helping to reduce printing of statements

and other banking documents. In Canada,

Scotia Online has approximately 4.3 million

registered users and online banking is

becoming increasingly popular in the other

countries where the Bank operates.

The Bank has continued to expand its video

conferencing capabilities with 181 video

conferencing facilities now installed in 26

countries. Video conferencing increases

productivity and saves money, as well as harmful

greenhouse gas (GHG) emissions from air travel.

During 2012, Bank employees participated

in over 3,300 scheduled video conferencing

meetings, enabling the Bank to avoid a

signifi cant amount of business air travel.

In 2007, Scotiabank began reporting its energy

usage within Canadian operations, broken

down by major fuel type (see chart on Pg. 29).

Now the data tracks more than 84% of global

operations.

Across the global organization, Scotiabank

is making a difference. Two years ago,

Scotiabank Mexico launched a battery

collection program to ensure their proper

disposal. This year they began collecting lamps

and car batteries too, for a total of over one

tonne of material.

Scotiabank Jamaica launched the Evergreen

project, to systematically replace older

ABMs with new, more sophisticated and

environmentally friendly ones. The new

ABMs have improved customer features

while requiring less energy to run, ultimately

reducing greenhouse gas emissions by at least

15% over fi ve years.

Efforts to reduce impact across the organization begin with the Bank’s environmental policy. The policy guides activities and efforts in all countries where Scotiabank does business.

Reducing environmental impact

Photo: Scotiabank employees in Costa Rica participated in a tree-planting event at La Sabana Park, San Jose. Participants logged 620 volunteer hours planting trees on more than 60 hectares of land in the centre of the capital city.


CSR in action: EcoLiving

EcoLiving is Scotiabank’s Canadian fl agship environmental program. Its purpose is to help consumers save

energy while going green at home and saving money at the same time.

Launched in 2010, EcoLiving has become

a resource for Canadians looking to be

more environmentally aware at home. With

the aid of an expert agency, Green Living

Enterprises, EcoLiving provides Canadians

with free, relevant advice all while reducing

environmental impact.

During its introduction, the EcoLiving

program was information-based and

geared strongly toward helping customers

take advantage of government rebates. The

website and the magazine were the key

tools for consumers. In just three years, the

program has grown substantially, mostly

through effective partnerships and is now

a full-service decision-making resource.

EcoLiving helps customers determine

what home improvement has the biggest

environmental and fi nancial impact, then

helps them fi nd the fi nancial resources to

make it happen.

Home Energy Savings Calculator

The newest tool on the EcoLiving website

is a free calculator which helps Canadians

create customized plans to make

environmentally friendly renovations. The

interactive site was created in partnership

with The Sustainable Housing Foundation,

a non-profi t dedicated to increasing energy

effi cient homes in Canada. The Calculator

(http://ecoliving.scotiabank.com/calculate)

provides users with a customized water and

energy savings plan that outlines the cost

and savings potential of various options

like installing energy-effi cient light bulbs,

adding insulation or replacing heating and

cooling systems.

EcoLiving Auto Loan

Launched this year, the EcoLiving Auto Loan

encourages the purchase of environmentally

friendly vehicles. Available at Canadian

Scotiabank affi liated auto dealerships, the

program provides discounted fi nancing

for the purchase of hybrid, clean diesel

and electric vehicles. Canada is the third

largest hybrid market in the world after

the United States and Japan, therefore,

the Auto Loan program is very much of

interest to Canadian auto buyers.

The program also supports an

organization dedicated to protecting areas

of natural diversity. EcoLiving Auto Loan

was launched with a donation of $25,000

to the Nature Conservancy of Canada

(http://www.natureconservancy.ca). For

every loan booked, Scotiabank makes an

additional donation of $10 to the Nature

Conservancy of Canada.

EcoLiving provides Canadians with free, relevant advice all while reducing environmental impact.”

“

Learn more:The website

http://ecoliving.scotiabank.com

has tips, tricks, tools and resources

about going green at home.

Photo: The newest tool on the EcoLiving website is a free calculator helping Canadians create customized plans to make environmentally friendly renovations.

Photo: Launched in 2010, EcoLiving, Scotiabank’s Canadian fl agship environmental program, has become a resource for Canadians looking to be more environmentally aware at home.

http://ecoliving.scotiabank.com/


GovernanceSocial3Scotiabank’s CSR efforts are about making a social impact on a number

of areas including the Bank’s own corporate values, how it treats

employees, how it contributes to causes across the globe and how

employees make a difference in their communities.

Photos left to right: Scotiabankers across the globe contribute to a positive social impact in their

communities. Far right: More than 200 Scotiabankers and their families took part in the 2012

Scotiabank Chile Reforestation Days at the Laura Vicuña Sanctuary in Santiago, Chile.

Volunteers planted 300 native trees over one hectare of land to help contribute to pollution reduction.

For more information

visit the Diversity and

Inclusion website

www.scotiabank.com/

diversityandinclusion

Diversity and inclusion

Business case

Scotiabank’s core purpose is to be the best

at helping customers become fi nancially

better off. Meeting the unique needs of a

wide range of customers is often complex

therefore, a diverse team is critical to solving

complex problems.

Truly diverse teams need to be supported by a

vigorous culture of inclusion where employees

can freely express new ideas or alternate

points of view.

In a global market, the ability to be innovative

and to leverage diversity through a culture of

inclusion is key to business sustainability.

Global diversity and inclusion strategy

Scotiabank launched a fi ve-year Global

Diversity and Inclusion Strategy in 2009 in

order to actively build a culture of inclusion.

Scotiabank’s Chief Executive Offi cer

champions the strategy along with the

Executive Management team. The strategy

includes building awareness and education as

well as developing performance targets and

action plans.

The goal of the strategy is to build a

competitive advantage through an inclusive

culture that celebrates diversity of talent.

Scotiabank’s Diversity and Inclusion website

outlines the history of diversity at the Bank,

sponsorships and donations, and awards.

Employees describe what diversity and

inclusion means to them in their own words

through video and/or in written form. A

parallel internal website, the Diversity and

Inclusion Fountain, is a hub for news, learning

and, most importantly, getting involved.

www.scotiabank.com/diversityandinclusion


In 2012

Scotiabank was recognized with the Simon

Fraser University’s (SFU) Nancy McKinstry

Award for leadership in diversity. Scotiabank

also won the SFU Beedie School of Business

Corporate Award for exemplifying the

values of diversity in the workplace.

Scotiabank scored particularly highly

for the diverse composition of its staff,

management and board.

In recognition of Scotiabank’s partnership

with ACCES Employment Financial Services

ConnectionsTM, the Bank received the Walk

of Fame: Employers Leading the Way award

for exemplary results in successfully hiring,

retaining and developing diverse talent.

For the fourth year in a row Scotiabank was

recognized as one of the top 10 Canadian

companies in the Corporate Knights 2012

Leadership Diversity Index. This annual report

recognizes Canadian companies (among 125

examined) that have achieved the greatest

visible minority, Aboriginal and female

representation at both the boardroom and

executive levels.

As a Canadian-based organization, Scotiabank respects the principles embodied in the Canadian Human Rights Act, which reflect international standards in human rights practices for both employees and customers.

Human rights

Business case

Employees want to work in an environment

where human rights are paramount and

customers want to do business with

organizations committed to human rights.

The Bank’s commitment on this front

highlights the importance placed on

a workplace free from discrimination.

Scotiabank also provides avenues for

employees to address discrimination.

Human rights principles

As a Canadian-based organization, Scotiabank

respects the principles embodied in the

Canadian Human Rights Act (CHRA), which

refl ect international standards in human rights

practices for both employees and customers.

In addition, the Bank respects all applicable

human rights and non-discrimination laws in

the jurisdictions in which it operates with due

regard to the spirit and intent of international

instruments on human rights, such as the

Universal Declaration of Human Rights, the

International Covenant on Economic, Social

and Cultural Rights, and on Civil and Political

Rights and the Declaration on Fundamental

Principles and Rights at Work.

Scotiabank supports the exclusion of child

labour in its operations, consistent with

the International Labour Organization (ILO)

Convention No. 138, as well as the prevention

of forced and compulsory labour, consistent

with the principles stated in ILO Convention

No. 29, Article 2. In countries where child


Leadership

labour and forced labour are evident,

Scotiabank’s higher standards of operating

serve as a model for local industry.

Scotiabank is a proud supporter of the new

Canadian Museum for Human Rights.

Scotiabank takes discrimination concerns very

seriously. The Bank has developed a proactive

working relationship with the Canadian Human

Rights Commission aimed at resolving concerns

in the Canadian workplace in a timely way. The

Bank provides training and education about

rights and obligations. Employee Relations

managers and local HR representatives

provide advice and counsel to employees and

managers to help address issues involving

human and labour rights.

In 2012

Human rights concerns are tracked and

monitored through a centralized reporting

system. Last year, Shared Services Employee

Relations dealt with 29 human rights concerns

through an internal escalation process and eight

formal human rights complaints through the

Canadian Human Rights Commission (CHRC).

In early 2012, Scotiabank implemented

Global Principles on Non-Discrimination in the

Workplace, which applies to all Scotiabank

operations and helps to guide employees in

their activities and decision-making. The Global

Principles encompass both human rights and

labour standards.

Business Case

Scotiabank continually makes an effort to

strengthen leadership capability in order to

ensure the Bank has the right people to drive

superior business results, today and in the

future. Leadership development is a key priority

for the organization and a clear competitive

advantage globally.

Leadership Strategy

With a team of more than 81,000 employees

and a global talent pool, it is critical to be able

to identify leaders wherever they work. It is

also important to enhance the experience of

all employees by making good management

a priority. In addition, providing consistent

programs and profi les for leaders across

the Bank is crucial to a successful global

organization.

Scotiabank’s Leader Profi le, for example,

defi nes what it means to be a leader at the

Bank. The Leader Profi le outlines the behaviours

all leaders must demonstrate, the values all

employees should model and the experiences

that are benefi cial to advance to more senior

roles. Aligning the development of leaders at

Scotiabank to the Leader Profi le helps to build

on the Bank’s leadership capacity.

Scotiabank also encourages employee

development in the form of experienced-

based opportunities. The Executive Program

Offi ce (EPO) provides employees with full-time

assignments to work on projects that address

key business or strategic issues faced by

the organization. During a six-to-12-month

assignment, employees are given opportunities

to learn through exposure to the executive

Scotiabank also encourages employee development in the form of experienced-based opportunities.


2011 2012

Scotiabank 2012 85% 84%

Norm among global financial services organizations 81% 82%

Overall, Scotiabank employees are highly engaged. Results show that Scotiabank continues to be at the forefront of employee engagement from a global benchmark perspective. At 84% engagement, we are in the top 10% of benchmarked financial services organizations globally and considered a leader in the field of employee engagement.

*This index measures the passion and commitment employees have for their job, coworkers and organization that influences them to go the “extra mile.”

42% Canada

17.1% Caribbean/Central America

38.7% Latin America

0.9% Asia/Pacific

1.2% Other

Latin America

13.5% Mexico

13.1% Peru

7.4% Other

4.8% Chile

team and to further develop their strategic

thinking, strategic infl uencing and team skills.

They receive support through external executive

coaching, executive and peer mentors.

In 2012

In 2012, the Bank launched Scotiabank

iLEAD to develop leaders and provide

a foundation for employees to become

effective people managers. iLEAD is an

educational curriculum for employees across

the globe, including programs on new

manager foundations, core management skills,

leadership foundations and senior leadership

development. The programs incorporate a

blend of learning methods, including group

workshops, one-on-one coaching, peer

feedback and self-guided learning.

Providing employees with the resources to

support their career development is a key

component of the Leadership Strategy. This

year, the Talent Profi le system was enhanced

to allow people managers to directly

input assessments for their direct reports.

Managers are now immediately able to

report competency skill levels, promotability

and career potential. The technological

improvement has helped provide people

managers with a tool for richer development

and career-planning discussions.

Employee

engagement

index (%)*

Geographic

breakdown

by region


Health

Social services

Education

Arts & culture

Sports

Environment

Other14%

4%

9%1%

30%

32%

10%

contributed about CAD$53 million in donations,

sponsorships and other forms of assistance.

Bright Future focuses on being relevant and

responsive to the needs of local communities at

the grassroots level across six pillars: education,

healthcare, social services, arts and culture,

sports and environment. In the Caribbean and

Latin America, the program focuses primarily on

children and children’s causes.

The Bank is particularly interested in partnering

with non-profi t and charitable organizations

that empower people with the skills, tools and

information to help them become better off.

Scotiabank’s contributions meet the Canadian

Centre for Philanthropy/Imagine’s guidelines

that encourage corporations to donate at least

1% of their domestic pre-tax profi ts.

Bright Future

In recognition of our community activity,

Scotiabank is the 2012 winner of the

Association of Fundraising Professionals

Corporate Philanthropy Award.

Business case

Since the Bank’s inception, Scotiabank and

its employees have been giving back to

communities in order to create a better place to

live and work. For over 180 years, this has been

part of the Bank’s culture and identity.

The program

Scotiabank Bright Future is the Bank’s global

philanthropic program, which brings together

the passion of employees, the insight of the

Bank’s partners and the spirit of communities.

The goal of the Bright Future program is to

make a difference: in fi scal 2012, Scotiabank

Through the Bright Future program, Scotiabank employees give extraordinary support to local causes.

Corporate

donations

in 2012

Photo: Scotiabank sponsors Girls HockeyFest, an initiative offering 300 young girls the opportunity to learn from and interact with top professional female hockey players while being educated on how to prevent brain and spinal injuries.

In 2012

What follows presents a small sample of the

hundreds of Bright Future activities in 2012:

• In Education, Scotiabank made a donation

to Fundación Marillac, A.C. in Mexico for

the education and training of low-income

youth to become nurses.

• Scotiabank also launched an innovative

mentorship program for First Nations,

Metis and Inuit students at the University

of Lethbridge, in Alberta, Canada.

• In Health, Scotiabank Trinidad and Tobago

hosted an annual fi ve-kilometre marathon

where 6,000 women came together to

walk, jog and run to raise funds for the

fi ght against breast cancer.

• In Social Services, Scotiabank renewed its

partnership with Eva’s Phoenix Print Shop

that provides a printing and design training

program for at-risk youth.

• In Arts and Culture, Scotiabank made a

donation to the Museum of Art of Lima,

in Peru to help promote Peruvian history

and culture.

• In Sports, Scotiabank has been supporting

the Futbolito program in Costa Rica,

donating sports supplies to schools

since 2010.

• In Environment, Scotiabank made a

donation to the Corporación Cultiva for

the reforestation of various areas in

Santiago, Chile.


2012 Global favourable score Benchmark

Scotiabank is socially and environmentally responsible 91% 89%

Through Scotiabank’s employee engagement index, employee perception of Scotiabank being a socially and environmentally responsible organization is measured.

SCOTIABANK IS

A MEMBER OF:

Business Case

Scotiabank supports employees in their

volunteer activities for a number of reasons:

it forms part of a culture of an inclusive and

diverse organization; volunteerism helps

build leadership skills; and local involvement

deepens the Bank’s relationships in the

communities where employees live and work.

Employee Volunteer Programs

Through the Bright Future program,

Scotiabank employees give extraordinary

support to local causes. In 2012, Scotiabank

employees contributed more than 500,000

hours of volunteering and fundraising time

to local charities. The Bank supports their

efforts through two formal, global employee

community programs:

• The Team Scotia Community Program

(TSCP) matches funds raised by employee

teams for community organizations.

Through TSCP, the Bank matches up to

CAD$5,000 raised by teams of fi ve or more

employees through their local fundraising

activities.

• The Scotiabank Employee Volunteer

Program (SEVP) provides donations to

community organizations where individual

employees have been active volunteers.

Individual employees or retirees who have

actively volunteered more than 50 hours in

one year can apply for a donation of up to

CAD$1,000 from the Bank.

To further recognize the efforts of

employees, Scotiabank launched the Bright

Future Community Leadership Awards in

2011, designed to celebrate Scotiabank

employees for their community leadership

and the difference they are making in local

communities. The individual awards include

CAD$2,500 in donations and the team

awards include CAD$5,000 in donations to

the registered charity of the winner’s choice.

In 2012

Scotiabank employees volunteered at the

Mississauga Food Bank in Ontario, Canada,

sorting and packaging numerous categories of

food as well as picking up donations locally.

Scotiabankers in Lima volunteered more than

90 hours and raised funds through raffl es

and ticket sales for a wheelchair basketball

tournament for the Asociación Deportiva

de Personas con Discapacidad de la Policía

Nacional del Perú.

Thanks to the volunteer time of Kong Wai Chi

Jenny, the Hong Kong YWCA organization

received a grant to continue its mission of

“Enhancement of Life”.

In 2012 Scotiabank and local Ministries of

Health and/or national HIV-AIDs Commissions

supported the Regional Testing Day campaign

in 17 countries, where confi dential testing is

done in select Scotiabank branches. Under this

initiative, more than 13,289 people were tested

in the Caribbean across 157 testing sites.

Close to CAD$2 million was raised in

the Scotiabank AIDS Walk for Life for

community-based AIDS organizations across

Canada. Scotiabank employees raised over

CAD$57,000, including matching funds from

Scotiabank.

Employee

perception of CSR

Employee engagement


CSR In Action: Suchitoto

The town of Suchitoto, a ninety minute drive from San Salvador, the capital of El Salvador, has been a sleepy

tourist stopover in the Central American countryside. It is a town not unlike Stratford, Ontario, Canada – close to

a capital, scenic, culturally-inclined – and as Stratford was 50 years ago, it is economically depressed.

Canadian-based volunteers with Cuso

International, a Canadian development

organization, fi rst identifi ed the similarities

between the two towns in the mid-

2000s. They brought together Antonio

Cimolino, now the Stratford Festival’s

artistic director, and local Suchitoto arts

and municipal leaders to discuss the

potential for local arts-based economic

development.

The result was EsArtes, a municipal

theatre training program for the arts that

creates a theatre. EsArtes is a technical

trade school for youth from which

students are recruited to produce theatre

productions. EsArtes teaches transferable

skills like carpentry to prop construction

and event management in performing and

technical programs.

The teachers at the schools are

predominantly Canadian volunteers,

local business owners and faculty

from the Department of Economy at

the National University in El Salvador.

Technicians, costume designers, lighting

designers all come from Stratford,

Ontario to teach sessions.

Scotiabank El Salvador currently plays

a supporting role to EsArtes. Along

with their corporate donation, the Bank

provides resources for promotional

material and public relations.

EsArtes goes to Washington

In 2011, EsArtes was invited to

Washington, DC for a week of showcasing

events to the Organization of American

States. The purpose of the week-long

series of performances, interviews and

workshops was to demonstrate the use

of theatre as a driver of local economic

development, as well as a way to engage

at-risk youth.

The event was supported by partners:

the Stratford Festival, Cuso International,

the Municipality of Suchitoto, Heritage

Canada, the Department of Foreign Affairs

and Trade Canada as well as Scotiabank.

The highlight of the week was the

performance in the Hall of the Americas in

front of an audience of 400 people.

“Now that the fi rst group of students

has graduated,” says Janira Walton de

Mejia, Scotiabank’s Senior Manager of

Marketing in El Salvador, “We have seen

the incredibly positive impact this program

has on the students and their families, by

giving them hope and opportunities for

the future.”

We have seen the incredibly positive impact this program has on the students and their families, by giving them hope and opportunities for the future.” “

Photo: Scotiabank has supported EsArtes, a municipal theatre training program and technical trade school for youth, since 2010. Student participants gain experience by producing theatre productions for the organization. Alongside the corporate donation Scotiabank provides resources for promotional material and public relations.


Appendix

Scope of reporting This annual report includes information from November 1, 2011, to October 31, 2012, for the following affiliates of Scotiabank in Canada: Scotia Capital Inc., The Mortgage Insurance Company of Canada, National Trust Company, Scotia Mortgage Corporation, Scotia General Insurance Company, Dundee Bank of Canada, Montreal Trust Company of Canada, Scotia Life Insurance Company, The Bank of Nova Scotia Trust Company, RoyNat Inc., RoyNat Capital Inc., and Scotia Merchant Capital Corporation.

Performance

Bright Future Indicators 2010 2011 2012

Total donations & sponsorships (global) $50 million $50 million $53 million

Number of global employee volunteer hours through formal community involvement programs 324,000 hours (1) 360,000 hours 500,000 hours

Employee Engagement Survey question: “Scotiabankgroup is socially and environmentally responsible”(2) N/A 91% favorable 91% favorable

Economic IndicatorsSalaries & employee benefits (global) $4.6 billion $5.4 billion $5.75 billion

Debt financing to business (Canada) over $83 billion over $90 billion over $100 billion

Taxes (global) $2.5 billion $2.4 billion $2.6 billion

Amount spent on goods & services from suppliers (global) $3.0 billon $3.5 billion $4.0 billion

Return on equity 18.3% 18.8% 19.7%

Social IndicatorsInvestment in employee training (global) $74 million $65 million $63 million

Employee satisfaction (global) 85% (3) 85% 84%

Women in senior management (global) 22.6% 23.5% 24.0%

Women in senior management (Canada) 33.1% 33.6% 33.8%

Visible minorities in senior management (Canada) 12% 9.5% 13.9%

Aboriginal employees (Canada) 1.1% 1.1% 1.2%

Employees with disabilities (Canada) 4% 3.8% 3.3%

Locations serving Aboriginal customers (Canada) 23 22 27

Environmental IndicatorsEnergy consumption (Canada) 1,413,731 GJs (4) 1,320,090 GJs (4) 1,296,627 GJs

Greenhouse gas emissions (Canada) 97,862 tonnes (4) 97,288 tonnes (4) 93,850 tonnes

Business travel (air/rail) 50,078,224km 57,813,611km 54,731,914km

Paper consumption (Canada) 4,319 tonnes 4,899 tonnes 4,503 tonnes

Paper shredding/recycling (Canada) 5,050 tonnes 4,237 tonnes 5,797 tonnes

Environmental disposal of computer equipment 4,748 items 4,384 items 4,096 items

Key economic, social and environmental performance indicators1 Number of employees in Canada*

Full-time Part-time Total

Alberta 2,653 1,183 3,836

British Columbia 2,286 1,195 3,481

Manitoba 505 222 727

New Brunswick 534 307 841

Newfoundland & Labrador 517 264 781

Nova Scotia 1,353 608 1,961

Northwest Territories 11 2 13

Ontario 21,794 4,874 26,668

Prince Edward Island 109 61 170

Quebec 1,909 531 2,440

Saskatchewan 484 328 812

Yukon Territories 15 10 25

Total 32,170 9,585 41,755

Total full-time equivalent ** 33902.3

* As of October 31, 2012, there were 1220 contract employees, representing 2.9% of the total Canadian workforce, and 3394 casual employees representing 8.1% of the total Canadian workforce. These numbers are included in the table above. **Geographic Breakdown is represented by headcount figures (actual number of individual employees), whereas Full-time Equivalent (FTE statistics) represent units of work reflecting a standard 37.5 hour work week. Note that one FTE might reflect work from more than one actual employee. Consequently, the aggregate FTE figure may not necessarily match the aggregate headcount figure.

Taxes in foreign regions

(As at October 31, 2012) Income ($ thousands) taxes

Asia Pacific 100,487

Caribbean & Latin America 476,835

Europe & Middle East 33,304

United States 159,076

Total 769,702

2012 taxes

Taxes in Canada

(As at October 31, 2012) Income Capital Other($ thousands) taxes taxes taxes(1)

Federal 397,023 0 186,872

Provincial Newfoundland 5,866 9,236 3,352Prince Edward Island 1,674 1,473 76Nova Scotia 14,535 10,963 5,281New Brunswick 4,628 4,805 1,638Quebec 23,530 393 17,091Ontario 270,068 0 205,475Manitoba 5,261 9,608 1,856Saskatchewan 4,999 8,069 833Alberta 28,489 0 5,692British Columbia 31,399 0 7,602Territories 528 0 36Total provinces 390,977 44,547 248,932Total 788,000 44,547 435,804

(1) includes payroll taxes, GST, HST, municipal taxes and deposit insurance premiums.

Scotiabank incurs a number of taxes, including direct taxes on income by Canadian federal and provincial governments and the governments of foreign jurisdictions in which the Bank operates, as well as several indirect taxes. In 2012 this totaled $2.6 billion (taxable equivalent basis), representing 31 per cent of the Bank’s pre-tax income for the year (taxable equivalent basis).

Total expenses (recoveries) to all levels of government in Canada are shown in the chart. For additional information on the Bank’s tax expenses in 2012, please refer to Table 57 in Scotiabank’s 2012 Annual Report, available online at scotiabank.com.

(1) This is a restated number. (2) This metric was introduced in 2011(3) The 2010 data represents a new index - Employee Engagement – which measures the passion and

commitment employees have for their job, coworkers, and organization, that influences them to go the “extra mile.”

(4) Numbers have been restated to account for locations that are not under our operational control using estimates based on comparable buildings. We continue to expand the geographic scope of our reporting boundary with the objective of reporting total emissions.


Branches/Offices/ABMs

Scotiabank’s strong customer focus and commitment to improving sales and service includes maintaining a strong branch network as part of its overall delivery strategy. The Bank currently has 1,037 branches and 3,488 ABMs in Canada. In 2012, as part of our expansion plans, we opened 8 new branches. We also relocated branches in four different communities during the past year and in each case, worked closely with our customers and the community in order to ensure a smooth transition.

Newly Opened Branch Locations in Canada in 2012

Alberta 300-1110 Panatella Boulevard, Calgary 2813 Main Street SW, Airdrie

British Columbia 1108 Homer Street, Vancouver 5135 Ladner Trunk Road, Delta

Newfoundland 24 Shoal Harbour Drive, Clarenville*

Ontario 4760 Bank Street, Ottawa 420 The Boardwalk, Waterloo 1535 Highway #7a, Port Perry 1 Manitoba Road, Elliot Lake* 5600 Main Street, Stouffville* 992 Bloor Street West, Toronto*

Quebec 1058 Boulevard Du Grand-Heron, St Jerome

* New branch as a result of relocation.

Branch Locations Closed, Relocated or Consolidated in 2012

Newfoundland 236A Memorial Drive, Clarenville Shopping Centre, Clarenville*

Ontario 151 Ontario Avenue, Elliot Lake* 6323 Main Street, Stouffville* 1034 Bloor St West, Toronto*

* Closure as a result of relocation.

ABM installations and de-installations*

ABMs de-installed

Alberta210 Scenic Drive South Box 911, Leth-

bridge7401 100th Ave., Peace River

New Brunswick89 Marr Rd., Rothesay1015 Regent St., Main Starewell, Fred-

ericton

Nova Scotia412 Welton St., Sydney45 Robie St., Truro205 South Albion St., Amherst

Ontario1600 Forest Valley Dr., Orleans1125 Colonel By Dr., Ottawa8003 Airport Rd., Brampton397 Bayfield Rd., Goderich5555 Ojibway Parkway, Windsor

Quebec900 Boul Rene Levesque Est.,

Suite 100, Québec5185 Avenue Du Parc, Montreal4861 Van Horne Ave., Montreal180 Chemin Lepine, Gatineau780 Rue Bouvier, Québec905 Laurie, Sept-Iles13200 Rue Sherbrooke Est., Montreal

9080 Maurice-Duplessis Blvd., Montreal

11052 Pie IX Blvd., Montreal9950 Louis H Lafontaine Blvd., Anjou6050 Louis H Lafontaine Blvd., Anjou8485 Viau Blvd., St. Leonard1055 Rue Jarry Est., Montreal515 Blvd De La Côte –Vertu,

St. Laurent7575 Décarie Blvd., Montreal5185 Avenue Du Parc, Montreal480 Curé Labelle Blvd., Laval3490 Le Carrefour Blvd., Laval2209 Lapierre Blvd., La Salle141 St.Joseph Blvd., Drummondville102 Rue Church, Cowansville 2 Sir Wilfrid Laurier, Beloeil325 De La Marine Blvd., Varennes7100 Grande Allée Blvd., Saint-Hubert780 Rue St. Laurent W., Longueuil170 Jean Leman Blvd., Candiac2350 Chemin Gascon, Terrebonne475 25th Ave., Sainte-Eustache231 Rue de St.Jovite, Mont-Tremblant420 Chemin Vanier, Gatineau555 Dr. Albiny Paquettemont Blvd.,

Laurier586 Larivière Ave., Rouyn-Noranda

ABMs installed

Alberta4702 44th St., Lloydminster3427 50th Ave., Lloydminster5001 52nd St., St. Paul 100 6th Ave. S.W., Slave Lake206 Railway Ave., Drumheller8317 20th Ave., Coleman722 Main St., Pincher Creek5023 50th Ave., Taber4701 1st St., Claresholm197 Carry Dr. S.E., Medicine Hat 5008 46th Ave., Taber541 13 St. N., Lethbridge1702 23rd St. N., Lethbridge471 Mayor Magrath Dr. S., Lethbridge2004 Mayor Magrath Dr. S., Lethbridge435 Banff Ave. Box 928, Banff1922 20th Ave., Coaldale203 2nd St., Brooks779 Sutherland Dr., Brooks 235 Milligan Ave., Okotoks1135 North Railway St., Okotoks115 Elizabeth St., Okotoks50 3rd Ave., High River7196 Temple Dr. N., Calgary3304 64th St. N., Calgary3510 39th Ave. N.E., Calgary4527 8th Ave. S.E., Calgary3904 17th Ave. S.E., Calgary120 36 St. S.E., Calgary 920 36th St. N., Calgary5320 8th Ave. S.E. Calgary1704 61 St. S.E., Calgary2936 Radcliffe Dr.S.E., Calgary3725 30 Ave. S.E., Calgary3525 26th Ave. S.E., Calgary3963 52nd St.S.E., Calgary7233 Ogden Rd. S.E., Calgary 8021 Ave. N.E., Calgary1907 8th Ave. N.E., Calgary 311 16th Ave. N.E., Calgary402 20th Ave. N.E., Calgary 2903 Centre St. N.W., Calgary4001 Macleod Trail S.W., Calgary 2012 Spiller Rd. S.E., Calgary9128 Macleod Trail S.E., Calgary675 Acadia Dr. S.E., Calgary950 Queensland Dr. S.E., Calgary5003 Centre St. N.W., Calgary 5512 4th St. N.W., Calgary 6820 4th St. N.W., Calgary920 Northmount Dr. N.W., Calgary1339 Northmount Dr. N.W., Calgary2417 4th St. N.W., Calgary 2604 Kensington Rd. N.W., Calgary601 17th Ave. S.W., Calgary7102 Elbow Dr. S.W., Calgary

102 1919 Southland Dr. S.W., Calgary460 Woodbine Blvd. S.W., Calgary 615 Shawcliffe Gate S.W., Calgary16311 6th St. S.W., Calgary2335 162 Ave. S.W., Calgary10 Copperstone Dr. S.E., Calgary3455 Douglasdale Blvd. S.E., Calgary11488 24th St. Unit 100 S.E., Calgary4615 Valiant Dr. N.W., Calgary 10099 Hidden Valley Dr. N.W., Calgary6303 Bowness Rd. N.W., Calgary4444 16 Ave. N.W., Calgary1619 37th St. S.W., Calgary2901 17th Ave. S.W., Calgary2923 26th Ave. S.W., Calgary4604 37th St. S.W., Calgary7712 Ranchview Dr. N.W., Calgary407 Hawkwood Blvd. N.W., Calgary166 Crowfoot Way N.W., Calgary150 Citadel Way N.W., Calgary30 #120 Springborough Blvd. S.,

Calgary6408 Old Banff Coach Rd. S.W., Calgary265 Falshire Dr. N.E., Calgary6688 Martindale Gate N.E., Calgary300-1110 Panatella Blvd., Calgary150 96th Ave. N.E., Calgary2820 Main St., Airdrie2813 Main St., Airdrie2002 Luxstone Blvd., Airdrie4925 52nd St., Innisfail4702 Ross St., Red Deer3803 40th Ave., Red Deer5925 54th Ave., Red Deer4602 50th Ave., Rocky Mountain House5010 48th Ave., Camrose14634 50 St. N.W., Edmonton6645 118 Ave. N.W., Edmonton8933 118 Ave. N.W., Edmonton7636 144 Ave., Edmonton12654 Fort Rd., N.W., Edmonton13203 82nd St., Edmonton 12727 97th St., Edmonton12203 97th St., Edmonton11528 107th Ave. N.W., Edmonton 10832 102nd Ave., EdmontonAirport Rd. & North Services Rd.,

Edmonton 12707 127th St. N.W., Edmonton 12621 118th Ave. N.W., Edmonton14865 137th Ave., Edmonton14125 118th Ave., Edmonton15604 95th Ave. N.W., Edmonton 10719 156th St., Edmonton 15430 Stony Plain Rd., Edmonton16220 Stony Plain Rd. N.W., Edmonton


ABM installations (cont’d)

9448 149th St. N.W., Edmonton6211 188th St. N.W., Edmonton1017 Potter Greens Dr. N.W., Edmonton4939 188th Ave.N.W., Edmonton11220 171st Ave. N.W., Edmonton11868 145th Ave. N.W., Edmonton16703 100th St. N.W., Edmonton12659 153rd Ave. N.W., Edmonton17604 97th St. N.W., Edmonton5004 162 Ave. N.W., Edmonton341 Kirkness Rd., Edmonton15715 66th St. N.W., Edmonton8210 160th Ave. N.W., Edmonton16720 76th St., Edmonton9726 Ottewell Rd. N.W., Edmonton9032 50th St. N.W., Edmonton6312 50th St., Edmonton 9104 82nd Ave. N.W., Edmonton6819 83rd St., Edmonton7612 104th St.N.W., Edmonton14908 45th Ave. N.W., Edmonton280 Saddleback Rd., Edmonton 3003 Calgary Trail, N.W., Edmonton10325 34th Ave., Edmonton1903 111th St., Edmonton2803 Millwoods Rd., Edmonton1704 Millwoods Rd. S., Edmonton3407 43rd St. N.W., Edmonton5661 23rd Ave. W., Edmonton800 Riverbend Square, Edmonton14110 127th St. N.W., Edmonton6304 Currents Dr., Edmonton389 91st St. S.W., Edmonton4913 50th Ave., Drayton Valley5206 4th Ave., Edson5103 50th Ave., Whitecourt110 Swanson Dr., Hinton141 Century Crossing, Spruce Grove1 Spruce Village Way, Spruce Grove2 Aspenglen Dr., Spruce Grove2 Spruce Ridge Dr., Spruce Grove4903 48th St., Stony Plain52 Brentwood Blvd., Sherwood Park2 Sioux Rd., Sherwood Park655 Baseline Rd., Sherwood Park1049 Clover Bar Rd., Sherwood Park6 Prairie Dr., Sherwood Park3049 Cloverbar Rd., Sherwood Park8775 85th St., Fort Saskatchewan9701 90th St., Fort Saskatchewan 10303 99th Ave., Fort Saskatchewan7802 95th Ave., Fort Saskatchewan 17 Anne St., St.Albert23 Akins Dr., St. Albert502 Albert St., St. Albert9707 100th St., Grande Prairie4801 50th Ave., Vegreville101 West Haven Blvd., Leduc3805 50th St., Leduc10002 Franklin Ave., Fort McMurray5202 55th St., Cold Lake4304 50th St., Cold Lake4819 50th Ave., Bonnyville618 10th St., Wainwright

British Columbia410 9th Ave N., Golden1608 Canyon St., Creston1261 Hwy 3 Ave., Fernie5001 South Access Rd., Chetwynd3160 Smith Dr., Armstrong401 Victoria Ave., Revelstoke34896 97th St., Oliver11 Eagle Crt., Osoyoos14404 Rosedale Ave., Summerland3066 Yellowhead Hwy., Houston75 Centennial Ave., Mackenzie4011 Hwy 16, Smithers2370 Burra Ave., Vanderhoof105 S Caribou Hwy., 100 Mile House12137 Harris Rd., Pitt Meadows4368 Main St., Whistler1901 Giribaldi Way, Squamish1250 Middleton Way, Vernon525 Cranbrook St., Cranbrook1930 2nd Street N., Cranbrook371 Trans Canada Hwy. N.E., Salmon

Arm801 105th Ave., Dawson Creek2202 Nicola Ave., Merritt123 Anderson St., Nelson1999 Columbia Ave., Castlegar860 Victoria St., Trail3104 27th St., Vernon3201 39th St., Vernon3968 Lakeshore Rd., Kelowna105 Highway 33 E., Kelowna1115 Bernard Ave., Kelowna295 Main St., Penticton902 8th St., Kamloops1790 Tranquille Rd., Kamloops615 Seymour St., Kamloops1 1590 Summit Dr., Kamloops320 Proctor St., Williams Lake119 Marsh Dr., Quesnel2320 Maple Creek Dr., Quesnel1720 Queensway St., Prince George1596 20th Ave., Prince George45632 Yale Rd., Chilliwack46325 Yale Rd. E., Chilliwack7385 Vedder Rd., Sardis2387 McCallum Rd., Abbotsford3027 Immel St., Abbotsford32081 Lougheed Hwy., Mission21243 Lougheed Hwy., Maple Ridge23180 Lougheed Hwy., Maple Ridge4010 200th St., Langley20296 56th Ave., Langley3312 Cost Meridian Rd., Port Coquitlam101 2540 Mary Hill Rd., Port Coquitlam1198 Lansdowne Dr., Coquitlam2591 Panorama Dr., Coquitlam2929 St John’s St., Port Moody4191 North Rd., Burnaby1031 Brunette Ave., Coquitlam2188 #100 Austin Ave., Coquitlam1500 Austin Rd., Coquitlam340 6th St., New Westminster447 East Columbia St.,

New Westminster923 Twelfth St., New Westminster

846 20th St., New Westminster7890 Canada Way, Burnaby14410 108 Ave. W., Surrey17638 60th Ave., Cloverdale13993 Fraser Hwy., Surrey7986 120th St., Surrey6828 128th St., Suite 2, Surrey11199 84th Ave., North Delta6389 120th St., Delta5135 Ladner Trunk Rd., Delta5723 48th Ave., Ladner1565 56th St., Delta15961 Fraser Hwy., Surrey24009 Dewdney Trunk Rd., Maple Ridge9724 Hwy 97, Winfield27211 Fraser Hwy., Aldergrove7275 Canada Way, Burnaby3790 Canada Way, Burnaby5175 Kingsway, Burnaby7600 Royal Oak Ave., Burnaby2092 East Hastings St., Vancouver1609 Nanaimo St., Vancouver3295 22nd Ave. E., Vancouver4894 Knight St., Vancouver7282 Knight St., Vancouver6904 Victoria Dr., Vancouver3304 Kingsway, Vancouver3011 Main St., Vancouver75 Broadway W., Vancouver710 West 6th Ave., Vancouver984 West Broadway, Vancouver99 Smithe St., Vancouver651 Robson St., Vancouver310 Robson St., Vancouver1093 Homer St., Vancouver1108 Homer St., Yaletown596 Seymour St., Vancouver556 Abbott St., Vancouver722 Thurlow St., Vancouver1199 Pender 103 St.W., Vancouver1588 Robson St., Vancouver1055 Denman St., Vancouver5680 Oak St. W., Vancouver8602 Granville St.,Vancouver3695 10th Ave. W., Vancouver8360 Granville Ave., Richmond8000 No. 3 Rd., Richmond904 Davie St., Vancouver1294 Granville St., Vancouver1100 Burrard St., Vancouver8080 Williams Rd., Richmond110-13 3800 Grant McConachie Way,

Richmond6111 River Rd., Richmond10991 No.1 Rd., Richmond9471 No. 2 Rd., Richmond1245 Lonsdale Ave., North Vancouver310 Chesterfield Ave., North Vancouver2930 Lonsdale Ave., North Vancouver1395 Marine Dr., West Vancouver4441 Joyce Ave., Powell River38471 Cleveland Ave., Squamish250 2nd Ave. W., Prince Rupert2328 Beacon Ave., Sidney4071 Shelbourne St., Saanich811 Bay St., Victoria

904 Yates St., Victoria910 Government St., Victoria813 Douglas St., Victoria1327 Douglas St., Victoria3896 Carey Rd., Victoria10 Burnside Rd.W., Saanich2978 Jacklin Rd., Langford2890 Westshore Parkway, Langford310 Wale Rd., Colwood435 Esplanade, Ladysmith1006 Government St., Duncan321 Trans Canada Hwy., Duncan400 Lakes Rd., Duncan2295 Cliffe Ave., Courtenay450 Ryan Rd., Courtenay506 5th Ave., Nanaimo190 Nicol St., Nanaimo1602 Bowen Rd., Nanaimo2875 Departure Bay Rd., Nanaimo477 North Terminal Ave.., Nanaimo6201 Blueback Rd., Nanaimo2016 South Island Hwy., Campbell River223 Dogwood St., Campbell River2892 3rd Ave., Port Alberni4233 Redford St., Port Alberni4934 Johnston Rd., Port Alberni

Manitoba55 Main St., Selkirk718 Saskatchewan Ave.,

Portage La Prairie1221 Saskatchewan Ave. W.,

Portage La Prairie104 Regent Ave., Winnipeg801 Regent Ave., Winnipeg404 Edison Ave., Winnipeg1393 Henderson Hwy., Winnipeg1091 Henderson Hwy., Winnipeg183 Marion St., Winnipeg234 St. Mary’s Rd., Winnipeg920 Archibald St., Winnipeg630 Watt St., Winnipeg554 Keenlyside St., Winnipeg456 Talbot Ave., Winnipeg1131 Nairn Ave., Winnipeg355 Henderson Hwy., Winnipeg438 St. Annes Rd., Winnipeg734 St. Mary’s Rd., Winnipeg1124 St. Mary’s Rd., Winnipeg1622B St Mary’s Rd., Winnipeg1200 Jefferson Ave., Winnipeg1871 Main St., Winnipeg1370 Main St., Winnipeg772 Mountain Ave., Winnipeg1007 McPhillips St., Winnipeg3021 Ness Ave., Winnipeg500 William Ave., Winnipeg1895 Wellington Ave., Winnipeg120 Keewatin St., Winnipeg891 Arlington Ave., Winnipeg627 Ellice Ave., Winnipeg815 Ellice Ave., Winnipeg1795 Portage Ave., Winnipeg1863 Henderson Hwy., Winnipeg1880 Ness Ave., Winnipeg568 Osborne St., Winnipeg


781 Corydon Ave., Winnipeg909 Lorette Ave., Winnipeg427 Academy Rd., Winnipeg1445 Corydon Ave., Winnipeg3510 Roblin Blvd., Winnipeg530 Dale Blvd., Winnipeg1490 Pembina Hwy., Winnipeg7 Killarney Ave., Winnipeg40 Brandt St., Steinbach701 10th St., Brandon3360 Victoria Ave., Brandon5 Willowdale Cres., Brandon109 Main St. S., Dauphin

Newfoundland24 Shoal Harbour Dr., Clarenville88 harbour Dr., Trepassey

Ontario4760 Bank St., Ottawa1000 Palladium Dr., Ottawa56 Bath Rd., Kingston1174 Lansdowne St.W., Peterborough180 King St.E., Bowmanville245 Wentworth St.W., Oshawa130 Rossland Rd.E., Ajax1991 Salem Rd., Ajax704 Kingston Rd., Pickering6777 Morrison St., Niagara Falls5104 Victoria Ave., Niagara Falls4025 Dorchester Rd., Niagara Falls7270 Drummond Rd., Niagara Falls316 Lake St., St.Catharines102 Hartzell Rd., St. Catharines106 Lake St., St. Catharines17 Claremount St., Thorold6 Crowland Ave., Welland111 Clarence St., Port Colborne5842 Main St., Stouffville

9 Borealis Ave., Aurora3680 Rutherford Rd., Woodbridge2064 Rutherford Rd., Concorde2163 Dundas St.E., Mississauga3965 Thomas St., Mississauga2330 Battleford Rd., Mississauga6980 Lisgar Dr., Mississauga2267 Lakeshore Rd. W., Oakville140 Father Tobin Rd., Brampton10511 Bramalea Rd., Brampton150 Main St. N., BramptonUnit 602, 7700 Hurontario St.,

Brampton333 Mountainview Rd. S., Georgetown735 Guelph Line, Burlington415 Melvin Ave., Hamilton810 Main St. E., Hamilton1190 Main St. E., Hamilton622 Upper Wellington St., Hamilton1535 HWY #7a, Port Perry268 Broadway Ave, Orangeville2201 Eglinton Ave. E., Scarborough 2498 Gerrard St. E., Toronto705 Don Mills Rd., North York1718 Wilson Ave., North York 975 Danforth Ave., Toronto1151 Queen St.E., Toronto1 Eglinton Ave. E., Toronto50 Bay St., Toronto334 Bloor St.W., Toronto 260 College St., Toronto3587 Bathurst St., North York1169 St. Clair Ave. W., Toronto873 Queen St.W., Toronto883 Dundas St. W., Toronto1260 Dundas St.W., Toronto1390 Weston Rd., Toronto1730 Bloor St. W., Toronto3355 Dundas St. W., Toronto

2480 Lakeshore Blvd. W., Etobicoke3260 Lakeshore Blvd. W., Etobicoke980 Islington Ave., Etobicoke360 William St., Wiarton328 Speedvale Ave. E., Guelph585 Eramosa Rd., Guelph648 King St W., Kitchener256 King St N., Waterloo425 University Ave., Waterloo420 The Boardwalk, Waterloo 3 Huron St., Woodstock327 Erie St., Stratford1076 Commissioners Rd. E., London1181 Western Rd., London72 Wharncliffe Rd. N., London7 Metcalf St. E., Strathroy10 Grand Ave. W., Chatham150 Richmond St., Chatham146 Mitton St. S., Sarnia366 Christina St. N., Sarnia138 Erie St. S., Leamington5124 Tecumseh Rd. E., Windsor925 Ottawa St., Windsor278 Tecumseh Rd. E., Windsor971 Wyandotte St. E., Windsor2585 Wyandotte St. W., Windsor1 Manitoba Rd., Elliot Lake212 Government St., Dryden 628 St. Anne’s Rd. Units I & H, Winnipeg

Quebec

1058 Boulevard Du Grand-Huron, St-Jérôme

Saskatchewan102 Main St., Melfort213 93rd Ave., Tisdale740 Main St., Humboldt301 11th Ave. E., Kindersley

219 Railway Ave. W., Rosetown112 Broadway Ave., Yorkton537 4th St., Estevan913 13th Ave., Estevan5 1st Ave. N.E., Weyburn938 Victoria Ave., Regina1761 Dewdney Ave. E., Regina2177 Broad St., Regina505 Broad St., Regina505 Albert St., Regina1824 9th Ave. N., Regina3210 Montague St., Regina4210 Albert St., Regina2934 Dewdney Ave., Regina2101 Pasqua St., Regina2323 East Quance St., Regina1106 Devonshire Dr. N., Regina935 Main St. N., Moose Jaw1210 13th Ave. N., Moose Jaw606 Branion Dr., Prince Albert215 15th St. W., Prince Albert1001 8th St. E., Saskatoon1930 8th Ave. St., Saskatoon1101 Broadway Ave., Saskatoon1015 Mckercher Dr., Saskatoon8 Assiniboine Dr., Saskatoon380 2nd Ave. N., Saskatoon1435 Idlwyld Dr. N., Saskatoon1740 Idlwyld Dr., Saskatoon3303 33rd St. W., Saskatoon1528 22nd St. W., Saskatoon234 Pendygrasse Rd., Saskatoon835 A Broadway Ave., Saskatoon1100 Central Ave., Saskatoon1752 100th St., North Battleford720 South Service Rd. E., Swift Current618 1st Ave. W., Meadow Lake

* The increase in the number of ABMs in 2012 is due to the installation of 470 units at the 7-Eleven ABM network, as well as relocation of 145 ABMs to another network switch provider.

• Canadian Code of Practice for Consumer Debit Card Services

• Code of Conduct for the Credit and Debit Card Industry in Canada

• Guidelines for Transfers of Registered Plans

• CBA Code of Conduct for Authorized Insurance Activities

• Principles of Consumer Protection for Electronic Commerce: A Canadian Framework

• Model Code of Conduct for Bank Relations with Small and Medium-sized Businesses

• Plain Language Mortgage Documents- CBA Commitment

• Commitment on Modification or Replacement of Existing Products or Services

• Low-Fee Retail Deposit Account, Memorandum of Understanding

• VISA Zero Liability Policy and VISA E-Promise

• Undertaking: Principal Protected Notes Regulations

• Online Payments

• Code of Conduct for Federally Regulated Financial Institutions-Mortgage Prepayment Information

Voluntary codes of conduct and public commitments*

Scotiabank is committed to a number of voluntary codes of conduct and public commitments designed to protect consumer interests.

These include:

* For a copy of the full text of the codes and commitments, refer to www.scotiabank.com, Customer Care page. Visit the websites of the Financial Consumer Agency of Canada (www.fcac-acfc.gc.ca) and the Canadian Bankers Association (www.cba.ca) for more detailed information on consumer protection.

ABM installations (cont’d)


Debt financing

Scotiabank is committed to meeting the needs of Canadian businesses, including small and medium enterprises. The following charts indicate – by province and for Canada as a whole – the amount of business credit authorized and outstanding, as of Oct. 31, 2012, and the number of customers to whom it was authorized.

Authorization over $5,000,000levels of: Authorized Outstanding $ thousands $ thousands Customers

British Columbia and Yukon*

Alberta,Saskatchewan and NWT***

Manitoba

Ontario

Quebec

NB, PEI, NFLD and NS ****

Canada 80,944,455 35,949,383 2,058

3,321,396

14,164,487 751,935

53,902,830

6,382,995

2,420,812

1,915,955

6,131,610 256,623

22,334,342

3,800,540

1,510,313

134

311 29

1,244

218

122

Authorization $0 - $24,999 $25,000 - $99,999 $100,000 - $249,999 $250,000 - $499,999 levels of: Authorized Outstanding Authorized Outstanding Authorized Outstanding Authorized Outstanding

$ thousands $ thousands Customers $ thousands $ thousands Customers $ thousands $ thousands Customers $ thousands $ thousands Customers

British Columbia & Yukon * 98,222 51,451 14,946 279,608 138,716 6,200 291,904 172,311 1,944 298,237 197,895 877

Alberta & NWT ** 432,882 94,098 76,999 441,583 186,665 10,101 355,044 195,371 2,373 380,730 232,945 1,139

Saskatchewan 30,533 15,070 3,692 124,638 66,227 2,644 132,957 82,921 866 109,612 76,355 325

Manitoba 106,289 21,518 9,313 811,861 245,746 15,606 843,225 422,450 6,495 230,479 155,691 700

Ontario 312,667 123,907 50,085 997,741 490,575 21,577 1,136,720 666,022 7,522 1,147,240 772,689 3,402

Quebec 76,214 54,507 9,989 243,611 163,319 5,377 210,325 136,548 1,372 213,518 149,576 632

New Brunswick 19,791 7,905 2,742 71,448 34,057 1,520 71,308 43,638 474 40,272 28,575 126

Nova Scotia 32,174 12,212 4,492 120,773 64,250 2,554 135,245 82,130 893 144,981 92,423 427

PEI 5,167 2,114 673 23,092 11,842 465 23,803 15,832 156 16,164 11,309 52

Newfoundland 21,496 7,903 3,023 82,124 35,813 1,847 67,048 36,994 453 42,633 27,439 129

Canada 1,135,434 390,685 175,954 3,196,477 1,437,213 67,891 3,267,577 1,854,217 22,548 2,623,865 1,744,897 7,809

Note: for reasons of client confidentiality, we have combined the following: * Yukon Territory with British Columbia. ** Northwest Territories with Alberta. *** Northwest Territories, Saskatchewan and Alberta. **** New Brunswick, Prince Edward Island, Newfoundland and Nova Scotia.

Authorization $500,000 - $999,999 $1,000,000 - $4,999,999levels of: Authorized Outstanding Authorized Outstanding $ thousands $ thousands Customers $ thousands $ thousands Customers

British Columbia & Yukon * 252,020 172,155 378 697,082 457,020 336

Alberta, Saskatchewan & NWT *** 315,193 183,231 501 910,710 511,542 425

Manitoba 166,716 91,000 264 252,817 145,202 132

Ontario 1,103,645 783,293 1,610 4,081,975 2,935,006 1,846

Quebec 256,207 175,290 376 857,317 565,496 381

NB, PEI, NFLD and NS **** 233,061 152,585 339 866,456 543,802 407

Canada 2,326,842 1,557,555 3,468 7,666,357 5,158,068 3,527

2010 2011 2012

Number of customer complaints received by Office of the President 10,123 10,445 10,597*

Percentage of customers surveyed who were fully satisfied with the handling of their complaint 88% 82% 84%**

* Represents total number of Office of the President complaints out of more than 19 million customers. Complaints are categorized by service, credit, policy, pricing, compliance, documentation and other to review for trends and recommend changes.** Based on surveys of 386 customers.

Customer complaint resolution

A clear and effective complaint resolution process is essential to our financial success and to being a responsible organization. Our statistical data and complaint resolution

process are outlined below. Internationally, Scotiabank follows a similar process, which may vary according to country regulatory requirements or local needs.

CUSTOMERS

(As at October 31, 2012) Total loans (CAD) Average loan size (CAD) # of customers

Perú (CrediScotia) $590 million $3,500 150,000

Chile (Banco Desarrollo) $60 million $3,000 14,000

Guatemala (Banco de Antigua) $60 million $3,000 15,000

Dominican Republic (Soluciones) $32 million $2,400 16,350

Jamaica (CrediScotia) $1 million $500 1,200

Total $743 million 197,500

Overview of Scotiabank’s microfinance services


Access to financial services

Financial institutions play a critical role in creating access to financial services, especially for groups with special needs, including youth, seniors, the economically disadvantaged and new Canadians. Scotiabank has developed customized products, services and financial education programs in a number of markets to help improve access to these services.

• Scotiabank Basic Banking Account (Canada) • Bank the Rest Savings Program (Canada) helps customers improve their savings habits while making everyday debit purchases.

• Scotia Power Savings Account provides an online, high-interest savings option.

• The Scotia Global Climate Change Fund allows customers to invest in companies that will mitigate the impact of climate change.

• Scotiabank hosts the Find the Money website to provide the public with information on ways to get the upper hand on their finances.

• Financial education tools on Scotiabank.com (e.g., Banking Lingo 101, Understanding Credit).

• The Student Banking Advantage plan (Canada) provides no-fee banking with unlimited debit transactions for full-time university or college students.

• Getting There Savings Program Youth (Canada) is a no-fee banking plan with unlimited debit transactions for children under 19 years of age.

• The Scotia Plus Achiever Account (International locations) provides a no-fee, higher-interest account for young savers.

• L’earn Visa card for students provides benefits including no annual fee, accelerated Moneyback rewards program and up to a 21-day interest-free grace period on purchases.

• The Student Scene Visa card provides benefits including no annual fee, Scene rewards points, which can be redeemed for free movies and other entertainment rewards, and up to a 21-day interest-free grace period on purchases.

• Scotiabank Educational Savings Plan is available in 17 Caribbean and Central American countries.

• Scotiabank Be Money Plan (many international locations) offers a high-interest savings account with no banking fees for full-time students.

• More than 19 Scotiabankers presented 57 seminars to over 1600 students across Canada during the 2011-2012 school year.

• In 2012 Scotiabank announced a CAD$500,000 partnership with Junior Achievement in the Caribbean and Latin America. Scotiabank employees from across 12 countries in these regions will volunteer their time to run more than 400 school sessions for more than 14,000 students.

• In Canada, customers aged 59 or over can request enrolment into the Scotia Plus program for Seniors, a no-fee banking plan with unlimited debit transactions plus other free or discounted services on eligible accounts.

• Helpful online RRIF/LIF/LRIF illustrator tool, literature and advice available for seniors.

• Scotiabank provides an in-depth Tax Free Savings Account Information Centre in Canada, with tailored content for retirees, at Scotiabank.com

• Scotiabank operates four on-reserve branches and a network of 27 Aboriginal banking centers (Canada).

• Scotiabank provides niche on-reserve lending programs to individuals and band councils across Canada.

• Through the Bank’s sponsorship of the Martin Aboriginal Education Initiative, Aboriginal high school students learn the fundamentals of entrepreneurship and business via a customized school curriculum program staffed by Scotiabank employee volunteers.

• Over 1700 branch based Small Business advisors proactively deliver practical tools, resources and banking services that help Small Businesses grow and succeed.

• Running Start for Business offers a package of services and resources to start-ups.

• Scotia Professional Plan is customized to meet the needs of professionals.

• Scotia Flex and Scotia One Account Plan for agricultural clients.

• Scotia Power Savings for business- a higher interest savings option for businesses.

• Scotiabank on-line Small Business community, Get Growing for Business provides articles, video coaching, webinars, tools and a daily blog which provides advice and information on a wide range of Small Business topics from Managing Cashflow to dealing with new technology.

Scotiabank StartRight program (Canada) – easier access to credit for newcomers, free day-to-day banking for one year, free safety deposit box rental for one year and a multilingual website that provides links to settlement assistance and newcomer financial resources. • Scotiabank StartRight Auto Finance program – provides newcomers with simple financing options for a new or used vehicle purchase at

participating dealerships• Scotiabank StartRight Mortgage program – helps newcomers to own their first home with a hassle-free mortgage tailored to landed immigrants and

foreign workers.

Microfinance operations in Chile, Peru, Jamaica, Dominican Republic and Guatemala manage microfinance subsidiaries with total loans in 2012 of CAD$743 million and financial literacy and business planning resources in select countries.

All

Youth

Seniors

New Canadians

Micro Business

Aboriginals

Small Business

Customer Segment

Customers

Basic Banking Savings, Investment and Credit Financial Literacy

EMPLOYEES

Diversity highlights at ScotiabankScotiabank has been tracking female representation at the VP+ level globally since 2007 and is currently exploring tracking other diversity groups from a global perspective.

Government 2010 2011 2012 benchmark**

Visible minorities (Canada)* 23.8% 24.6% 25.1% 20.4%

Visible minorities in senior management (Canada)* 11.5% 9.5% 13.9% 8.7%

Women (Canada)* 69.4% 68.4% 67.0% 62.2%

Women in senior management (Canada)* 33.1% 33.6% 33.8% 24.2%

Women in VP+ positions (Global) 22.6% 23.5% 24.0% NA

Persons with disabilities (Canada)* 4.0% 3.8% 3.3% 4.2%

Aboriginals (Canada)* 1.1% 1.1% 1.2% 1.7%

Data is as at October 31, 2012* Data excludes provincially regulated Scotia/McLeod and Roynat Capital employees** This is a tailored availability rate derived from the 2006 Census that is customized to the banking environment and is

calculated by looking at specifi c occupations where Scotiabank has employees.

Scotiabank’s global salaries and benefi ts

($ millions) 2012

Salaries $3,231

Performance-based compensation $1,477

Stock-based compensation $208

Pensions and other benefi ts $833

Total $5,749

Total voluntary* employee turnover (Canada)

2010 2011 2012

8.7% 8.9% 9.4%

* Voluntary denotes those who have left due to resignation, voluntary settlement, or contract expiration.

ENVIRONMENTScotiabank Canadian paper consumption (tonnes)Paper % change 2011/12 classifi cation 2010 2011 2012 (decrease) FSC**

2/5 of highest Business forms* 2,610 3,816 2,867 (24.87) volume items

Business cards 7 9 7 (28.60) 100%Letterhead 12 13 7 (46.15) 100%Bond copy paper 1,560*** 1,516 1,464 (3.43) 100%Annual reports 75 83 71 (14.46) 100%Marketing direct mail 165 92 87 (5.43) 100%Total weight (tonnes) 4,429 4,899**** 4,503 (8.08)

Consumption per employee 0.13 0.14 0.13

Scotiabank bond copy paper consumption in international locations in 2012

Country* Weight (tonnes)

Mexico 504.7Peru 205Chile 247Costa Rica 61.31Jamaica 1,299Belize 5.8BVI 4.5Dominica 0.97Dominican Republic 45.8St. Vincent 0.55Total 2,374.63

2012 greenhouse gas emissions (Canada and International)

Source CO2 emissions* (metric tonnes)

Indirect CO2e produced fromelectricity and steam purchases 128,052

Direct CO2e emissions producedfrom combustion of fuels 16,310

Indirect CO2e emissions produced from employee air travel 8,765

Total CO2e footprint 153,127 **

* Calculated in accordance with the Greenhouse Gas Protocol of the World Resources Institute and the World Business Council for Sustainabile Development (www.ghgprotocol.org), including emission factors for electricity purchases, natural gas and fuel.

** The completeness and accuracy of our total GHG emissions has been verifi ed by an independent third party.

Scotiabank maintains an ongoing commitment to operating in an energy-effi cient manner to minimize our carbon footprint.

2012 energy consumption (Canada)

Total Total GHG GHG Intensity GHC IntensityType of energy energy use emissions per employee per m2

Electricity (MWHs) - Scope 2 264,628 73,592

Fuel Purchases (GJs) - Scope 1 343,967 16,281

Total Electricity and Fuel (GJs) 1,296,627 89,873 2.63 0.0934

2012 energy consumption (International)

Total Total GHG GHG Intensity GHC IntensityType of energy energy use emissions per employee per m2

Electricity (MWHs) - Scope 2 126,205 54,460

Fuel Purchases (GJs) - Scope 1 441 29

Total Electricity and Fuel (GJs) 454,779 54,489 1.61 0.0735

Measuring energy consumption

Notes:* The above information was collected from the best available data and methodologies, which includes information directly

captured from invoices processed for payment from various utility vendors. We continue to expand the geographic scope of our reporting boundary with the objective of reporting total emissions. As well, for the fi rst time we estimated for locations that are not under our operational control based on comparable buildings.

* Our Canadian report is based on 1,041 owned and leased retail locations and the space occupied by the Bank in 166 offi ce buildings across Canada, representing approximately 960,000 square meters.

* Our International report is based on 1,255 owned and leased retail locations and the space occupied by the Bank in 51 offi ce buildings in Mexico, Jamaica, Costa Rica, Dominican Republic, El Salvador, Trinidad & Tobago, Peru and Chile representing approximately 740,000 square meters.

* Scotiabank uses more than 4,500 different kinds of forms, but the majority fall into fi ve categories: regular format, high speed printer/ABM rolls, snap sets (carbonless), envelopes and companion booklets. Currently, two of these categories-envelopes and account companion booklets-use FSC paper.

** Forest Stewardship Councils (FSC) certifi ed paper, a stringent system for guiding responsible forest management, guarantees that paper is produced in a way that conserves biological diversity and fragile ecosystems, ensures social responsibility and respects the rights of First Nations peoples and local communities.

*** The 2010 number is restated based on supplier error.**** The increases are due to materials required for new branches and mergers, as well as rebranding and telephone number updates.

* In 2011 Scotiabank reported on only 4 countries. This year, through the expansion of our reporting process we were able to add: Jamaica, Belize, BVI, Dominica, Dominican Republic and St. Vincent to our totals.


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9478112® Registered Trademark of The Bank of Nova Scotia.

Banks have a responsibility to support economic and social progress for a brighter future for everyone.”“

Commitment in Action2012 Scotiabank Corporate Social Responsibility Report

Our philanthropic program,

Scotiabank Bright Future responds to the needs of communities globally at the grassroots level through

donations, sponsorships and employee volunteerism across six pillars.

Go online for the latest news and successes of Scotiabank Bright Future in local communities at www.scotiabankbrightfuture.com

Together,

we are building stronger communities.

Scotiabank’s Bright Future program focuses on

responding to the needs of local communities

around the world at a grassroots level. The

program brings together the passion of our

employees, the insight of our partners and

the spirit of our communities. In 2012, that

passion, spirit and insight were recognized by

the Association of Fundraising Professionals

(AFP), Greater Toronto Chapter, when

Scotiabank received the Philanthropy Award

and was named Outstanding Corporation.

The annual awards honour

transformational leadership in

philanthropy. The awards recognize

individuals or groups who

demonstrate outstanding

commitment to the community and

empower others to meet challenges

and overcome obstacles.

Scotiabank contributes to a wide range

of community causes worldwide. As well,

Scotiabankers volunteer countless hours to

bring about change in their local communities.

www.scotiabankbrightfuture.com